San Diego, CA -- (SBWIRE) -- 05/08/2018 -- The Whistleblower Institute announces that New York Contractors, along with two owners reached more than $3 Million settlement in a whistleblower lawsuit filed over falsely procuring federal contracts designated for service-disabled veteran-owned small businesses.

Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute at mail@whistleblowerinstitute.com or call: 619-452–1218. There are no costs or obligations to you.

A settlement has been reached to resolve False Claims Act allegations against Zoladz Construction Company Inc (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), along with two owners, John Zoladz and David Lyons.

The allegations arose from a lawsuit that claimed Zoladz Construction Company Inc (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), along with two owners, John Zoladz and David Lyons of improperly obtaining federal set-aside contracts designated for service-disabled veteran-owned (SDVO) small businesses.

Only small business owned and operated by service-disabled veterans are eligible to receive SDVO set-aside contracts.

According to the government, allegedly ZCCI recruited a service-disabled veteran to serve as the purported owner and manager of Arsenal, which was merely a front for securing SDVO set-aside contracts. Arsenal then subcontracted nearly all of the work under those SDVO contracts to Alliance and ZCCI. Additionally, the owners allegedly made false representations to the U.S. Department of Veterans Affairs regarding Arsenal's eligibility for SDVO contracts.

"Contracts are set aside for service-disabled veteran-owned small businesses so to afford veterans with service-connected disabilities the opportunity to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities," said Acting Assistant Attorney General Chad A. Readler of the Justice Department's Civil Division. "Every time an ineligible contractor knowingly pursues and obtains such set-aside contracts, they are cheating American taxpayers at the expense of service-disabled veterans."

The allegations were brought forward by a whistleblower, who will receive $450,000 as a result of the settlement.

The Whistleblower Institute is an information portal for current or former employees and other people having insight information about wrongdoing and other illegal activities by individuals either individually or within corporations, through company culture and or within international affairs. Whistleblowers should keep in mind that under the Dodd-Frank Act any person who provides the Securities and Exchange Commission ("SEC") with original information that leads to a successful enforcement action with over $1 million recovered must be awarded between 10%-30% of the total amount recovered. In order to determine the total amount of the reward there are numerous factors that need to be considered. Whistleblower actions are complex and our goal is to guide any whistleblower every step of the way. The Whistleblower Institute is dedicated to partnering with any individual who have information about fraud and we work with many of the best law firms worldwide.

Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute.

Contact:
Whistleblower Institute
2534 State Street - Suite 406
San Diego, CA 92101, USA
Phone: +1 (619) 452–1218
Facsimile: +1 (619) 785 – 3185
Email: mail@whistleblowerinstitute.com

The material was prepared by the Whistleblower Institute for informational purposes only and is not legal or financial advice. The information is provided only as general information which may or may not reflect the most currently available public information, is not provided as a basis for any established or existing relationship, and is not intended to constitute legal or financial advice, or to substitute for obtaining such advice from an attorney or other advisor licensed in your state.