Ryan Beasley Law
Close Menu X Close Menu X
What can we help you find?

Company to pay large fine to settle allegations of misconduct

The U.S. Government has a long tradition of using government contracts to promote small businesses. Among those initiatives is a preference granted to small business owned by veterans who were disabled due to their service. Congress set up procurement targets for the VA to promote these small businesses. To be eligible for one of these contracts, the applicant must qualify as a "small business" and be managed by a veteran with a disability.

In this particular case, the Hayner Hoyt Corporation agreed to pay 5 million dollars plus interest to resolve allegations that it exploited opportunities reserved for disabled veterans. This settlement resolves Justice Department allegations that the CEO and several employees of Hayner Hoyt misrepresented the status of a now-shuttered company to secure a government contract.

Allegedly, the company, called 229 Construction, was run by a disabled veteran. But, upon further investigation, this veteran was responsible for snow plowing and running the tool inventory. He was not the CEO. Additionally, it appears that the president of Hayner Hoyt had all emails that were intended for the veteran who was represented as running 229 Construction forwarded to his email account.

The defendants admit in the settlement that their conduct circumvented federal regulations and that Hayner Hoyt Corp. made a profit on those contracts that were improperly acquired. The investigation was prompted by a whistleblower lawsuit filed under the False Claims Act. The False Claims Act allows private citizens to file claims on behalf of the U.S. Government and to share in any recovery.

Securing government contracts involves following all stipulations to the letter. Doing otherwise could result in serious issues, and regardless of your intentions, you may end up facing scrutiny. If you are the subject of an investigation by the government, then you may want to speak to an attorney. This case was settled with a payout settlement, but not all of them necessarily end that way.

Source: Department of Justice, "The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act Liability," Office of Public Affairs, Mar. 14, 2016

No Comments

Leave a comment
Comment Information

Over my career, I have earned a number of honors reflecting my professionalism and commitment to my clients. These awards include:

    • 10 best 2016 client satisfaction American institute of personal injury attorneys
    • 10 best 2016 client satisfaction American institute of criminal law attorneys
    • Martindale-Hubbell | Distinguished | Peer Rated for High Professional Achievement | 2019
    • National Academy of Criminal Defense Attorneys
    • The National Trial Lawyers | Top 100 Trial Lawyers
    • The National Trial Lawyers | Top 40 Under 40
    • Nationally Ranked Superior DUI Attorney By the nafdd | 2013
    • Top Young Attorneys | 2014 | Rising Stars selected by Peer Recognition and Professional Achievement
    • Rated By Super Lawyers | Rising Stars | Ryan L. Beasley | SuperLawyers.com
    • America's Most Honored Professionals | Ryan L. Beasley
    • Martindale-Hubbell | Client Champion | Gold / 2019
    • Expertise | Best Criminal Defense Lawyers in Greenville
    • 2015 Legal Elite of the Upstate | Greenville's Top Attorneys
    • Legal Elite of the Upstate
    • Legal Elite of the Upstate 2013-2018
    • Client Distinction Award | Ryan L. Beasley, Esq.
    • Client Champion 2019 | Ryan L. Beasley | Gold
    • Highest Possible Rating in Both Legal Ability & Ethical Standards | Ryan L. Beasley, Esq.

Need Legal Advice?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy