The Department of Justice announced that Gilbane Building Company has agreed to pay $1.1 million to settle allegations that W.G. Mills Incorporated (now part of Gilbane) created a front-company in order to obtain contracts set aside for small businesses owned by disabled veterans:

To qualify as a SDVOSB [Service Disabled Veteran Owned Small Business], a company must be operated and managed by service-disabled veterans and must not be affiliated with a large company.  The government alleged that W.G. Mills created VCI [Veterans Constructors Incorporated] merely as a contracting vehicle and that VCI’s affiliation with W.G. Mills rendered it ineligible to be awarded set-aside contracts for SDVOSBs.  The government further alleged that W.G. Mills performed the work that VCI was required to perform under the Coast Guard contract, and alleged that if the Coast Guard and the Small Business Administration (SBA) had known that VCI was nothing but a front company, the Coast Guard would not have awarded it the contract.

Read the entire press release, “Gilbane Building Company to Pay $1.1 Million to Resolve False Claims Allegations”