LOS ANGELES
A Santa Maria company paid $1 million because it falsely claimed it was a Service-Disabled Veteran-Owned Small Business to get landscaping and cemetery restoration contracts with the U.S. Department of V
eterans Affairs, according to federal officials.
The government’s settlement with Veterans of the Land, Inc. on May 6 resolves an investigation into allegations that the company violated the False Claims Act by falsely representing that it was a Service-Disabled Veteran-Owned Small Business, when it was actually controlled by a non-veteran, according to authorities.
The $1 million payment, which was made on May 11, represents virtually all of Land Inc.’s assets, according to authorities.
Veterans of the Land, which is located in Santa Barbara County, has no further contracts with the VA and, as part of the settlement, has agreed to dissolve as a corporation, officials said.
From 2008 to 2013, officials stated that Land Inc. obtained contracts with the VA under the service-disabled veteran program to provide landscaping and cemetery restoration services at various U.S. National Cemeteries, including Riverside National Cemetery.
There is no allegation that the services provided by the company were improperly performed.
The VA started investigating Land Inc. after a routine audit of service-disabled veteran contractors raised concerns about the company, officials stated.
To qualify as an service-disabled contract, the veteran must actually control the company, according to officials.
Land Inc.’s co-owner, Robert Laurel, allegedly recruited a relative, Enrique Escamilla, who is a service-disabled veteran, to partner in the company.
But Escamilla lived in Hawaii, allegedly spent much of his time there, and Laurel allegedly made all important corporate decisions, including leasing equipment from another company that he owned.
“This settlement vindicates and protects the interests of legitimate Service-Disabled Veteran-Owned Small Businesses by ensuring the integrity of the VA’s contracting program that supports these businesses,” said Acting U.S. Attorney Stephanie Yonekura. “Veterans who contract with the government must be assured that there is a fair playing field.”
Douglas J. Carver, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General or OIG, Western Field Office, stated: “This settlement demonstrates the OIG’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as Service-Disabled Veteran-Owned Small Businesses and deny legitimate disabled veterans of the opportunity to compete for VA contracts. The VA OIG will continue to work these complex cases in order to protect the integrity of this program.”