Last Friday, Khalil Naim, former executive of SEK Solutions was sentenced for his role in defrauding the US Government. In addition to one month of incarceration beginning August 30th, he will pay $479,641.23 in restitution. Last year, he pleaded guilty aiding and abetting a false statement his wife Edna Naim made to capture a contract as a so-called 8(a) business, a small, disadvantaged business. By law, Edna Naim was required to run that business in order to be eligible for the set aside contract. In reality, Khalil Naim and another man named Ron Villanueva ran it.
Former State Representative Ron Villanueva was sentenced to 2-1/2 years in prison and over $524,000 in restitution after pleading guilty earlier this year to charges stemming from assisting two forms defraud the US government. Specifically, Villanueva had served as Vice-President and then President of SEK Solutions as well as a board member of Karda Systems.
Additionally, Samuel Caragan of Karda Systems, who was found guilty of making a false official statement in a scheme with Villanueva, was sentenced to four years of probation, including six months of home detention and must pay over $240,000 in restitution.
Oh damn, I feel bad for Sam.. he is not a bad guy, what a bummer.
I’m curious, was the man’s wife required to run the business because they won the contract under the “disadvantaged business” criterion (i.e. its run by a woman)?
If so, this seems to be yet another example of why this kind of thing, especially in military procurement, is such a ridiculous idea – along with the whole host of usual other reasons. I thought we had learned this by now, but I guess if a collapsed bridge in florida won’t do it, neither will this.
Yes, she was, and she didn’t. This is not isolated to DoD. The small, disadvantaged business program is run by the small business administration and the federal government is mandated to purchase a certain amount of goods and services from these businesses each year.