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Investigations

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New York Company Owner Pleads Guilty and Agrees to Civil Settlement in Connection with Government Contracting Fraud Scheme

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.