Strock Contracting Pays $4.75M to Resolve Allegations of SDVOSB Fraud

Strock Contracting has agreed to enter into a consent judgment with the United States for $4,752,000 to resolve allegations it fraudulently obtained federal contracts set aside for service-disabled veterans. Strock Contracting allegedly recruited a service-disabled veteran to create a pass-through company – Veterans Enterprises Company – that was actually controlled by Lee Strock. Phony loans, sham lease agreements, and other deceitful financial arrangements, transferred funds from VECO to Strock Consulting.

See also: 

Defendants Can’t Duck Responsibility for Creating Sham SDVOSB; United States District Court for the Western District of New York No. 15-CV-0887-FPG, U.S. v. Lee Strock, et al.

Second Circuit: “Payment Decision” Includes Contract Formation in Fraudulent Inducement Cases; United States Court of Appeals for Second Circuit No. 19-4331, United States v. Lee Strock, et al.

Source:

• Department of Justice: Cheektowaga Contractor Agrees To Settle False Claims Act Violations