ALEXANDRIA, Virginia – 360 Patriot Enterprises, LLC (360 Patriot), located in Alexandria, Virginia, and its former minority shareholder, 360 Ventures LLC (360 Ventures), located in Wilmington, Delaware, have agreed to pay a combined amount of $ 1.00 $ 12 million to settle civil fraud allegations that 360 Patriot was awarded two US Army Small Business Owned Disabled Veterans (SDVOSB) contracts at a time when 360 Patriot was not controlled by a veteran invalid (SDV), said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
In order to qualify as a SDVOSB, companies must meet defined eligibility criteria, including the fact that the company is unconditionally and directly owned and controlled at least 51% by one or more SDVs. The United States alleged that, from March 2015 to December 2017, 360 Patriot was controlled by a non-SDV, and 360 Ventures facilitated the control by that non-SDV of the company under prior ownership and management. Meanwhile, 360 Patriot secured two military contracts that were reserved for qualified SDVOSBs.
The current 360 Patriot management submitted a written disclosure from the contractor to the Department of Defense Inspector General’s office in October 2020, outlining probable prior control of the company by a non-SDV.
The resolutions obtained in this case were the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Virginia; the Defense Criminal Investigation Service; US Army Criminal Investigations Command, Public Procurement Fraud Unit; and the Navy Criminal Investigation Service.
The case was investigated by Deputy US Prosecutors Kristin S. Starr and William Hochul.
The civil claims settled by the Settlement Agreement are only allegations; there was no determination of civil liability.
A copy of this press release is available on the website of the Office of the United States Attorney for the Eastern District of Virginia.