September 7, 2022
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.