Virginia Individual Sentenced in Connection with Government Contracting Fraud Scheme
On September 7, 2022, the U.S. District Court for the Northern District of New York sentenced David Rose to a $2,000 fine, a criminal forfeiture of $33,992, a $100 special assessment, and $33,992 in restitution to the U.S. Army. On March 30, 2022, Rose pleaded guilty to conspiracy to commit wire fraud. Rose and co-conspirator Sean O’Sullivan—co-owners 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 is a service-disabled military veteran but O'Sullivan is not. Rose and O'Sullivan falsely represented to Federal agencies that SDC was a SDVOSB and that Rose personally managed and controlled SDC's day-to-day business operations. However, O'Sullivan actually fulfilled these roles. SDC received over $3 million from various U.S. Army contracts, as well as nearly $308,000 in revenue from a Saint Lawrence Seaway Development Corporation contract that was set aside for SDVOSBs.
DOT-OIG conducted this investigation with Defense Criminal Investigative Service, Army Criminal Investigation Division, Small Business Administration OIG, and General Services Administration OIG.