On September 15, 2021, in the U.S. District Court for the Northern District of New York, Sean O'Sullivan pleaded guilty to conspiracy to commit wire fraud and bribe a public official. O’Sullivan is the owner of Sierra Delta Contracting, LLC (SDC) and SOS, Inc. In a civil settlement agreement with the U.S. Attorney’s Office for the Northern District of New York, O’Sullivan and their two companies agreed to pay the United States $690,542.68 to resolve civil False Claims Act fraud allegations. As outlined in court filings, O'Sullivan conspired to fraudulently obtain Government contracts set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSB) that SDC was not eligible to obtain. SDC received over $3 million from various U.S. Army contracts, as well as nearly $308,000 from a contract with the Saint Lawrence Seaway Development Corporation. Those funds had been designated for SDVOSBs. O'Sullivan also bribed a U.S. Army contracting officer by providing tangible and intangible things of value in exchange for preferential treatment.
DOT-OIG is conducting this investigation with the Defense Criminal Investigative Service, Army Criminal Investigation Division, Small Business Administration OIG, and General Services Administration OIG.