Contracting

Federal contractor sentenced

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A federal court sentenced an executive of companies that defrauded millions in federal government contracts to prison for his actions.

On July 2, a U.S. District Court Judge in Virginia handed down a two-and-a-half-year prison sentence to Ronald Villanueva for his role in a conspiracy using two small businesses that brought in $80 million in fraudulent federal contracts.

The court also ordered Villanueva, a former member of the Virginia state legislature, to pay $524,533 in restitution as part of his sentence.

Villanueva participated in a nine-year-long conspiracy with two companies -- SEK Solutions and Karda Systems, based in Virginia Beach, Va.-- to get Small Business Administration minority set-aside contracts by misrepresenting ownership and management of the companies, according to a July 2 statement from the U.S. Attorney’s Office of the Eastern District of Virginia.

Karda Systems and SEK Solutions were also among a slew of companies that agreed to pay the federal government $16 million in 2017 to settle bid-rigging conspiracy and false claims allegations brought in a whistleblower lawsuit.

About the Author

Mark Rockwell is a senior staff writer at FCW, whose beat focuses on acquisition, the Department of Homeland Security and the Department of Energy.

Before joining FCW, Rockwell was Washington correspondent for Government Security News, where he covered all aspects of homeland security from IT to detection dogs and border security. Over the last 25 years in Washington as a reporter, editor and correspondent, he has covered an increasingly wide array of high-tech issues for publications like Communications Week, Internet Week, Fiber Optics News, tele.com magazine and Wireless Week.

Rockwell received a Jesse H. Neal Award for his work covering telecommunications issues, and is a graduate of James Madison University.

Click here for previous articles by Rockwell. Contact him at mrockwell@fcw.com or follow him on Twitter at @MRockwell4.


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