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Virginia Individual Pleads Guilty and Agrees to a Civil Settlement on a Government Contracting Fraud Scheme

On March 30, 2022, David Rose pleaded guilty in the U.S. District Court for the Northern District of New York to conspiracy to commit wire fraud. Rose and co-conspirator Sean O’Sullivan, co-owner with Rose of Sierra Delta Contracting, LLC (SDC), participated in a scheme to obtain Government construction contracts set aside for service-disabled veteran-owned small businesses (SDVOSB). Rose agreed to pay $67,984 to the United States to resolve civil liability in connection with the submission of false claims to the Federal Government for payment.
Rose and O'Sullivan falsely represented to Federal agencies that SDC was an SDVOSB and that Rose, a service-disabled military veteran, managed and controlled SDC's day-to-day business operations. Actually, O'Sullivan, a non-service-disabled veteran, fulfilled those roles. In September 2021, O'Sullivan pleaded guilty to conspiracy to commit wire fraud and conspiracy to bribe a public official.
DOT-OIG is conducting this investigation with Defense Criminal Investigative Service, Army Criminal Investigation Division, Small Business Administration OIG, and General Services Administration OIG.