Feds: Michigan man defrauded government of $12M in contracts
A Bloomfield Hills man pleaded guilty Tuesday to a charge related to a scheme federal officials say defrauded the government of nearly $12 million in construction contracts.
Between 2007 and 2015, William Kozerski and others illegally acquired six contracts under the Service-Disabled Veteran-Owned Small Business program for work on VA medical centers in Cleveland, Detroit and Ann Arbor, according to court documents filed in Ohio last month.
The effort sets aside certain contracts for small businesses that were majority owned and controlled by service-disabled veterans. Participants must meet several requirements, including having a service-related disability determined by the government and owning more than 51 percent of their business seeking contracts.
Kozerski presented a state-based company, CA Services, as qualifying for the program although no one there was a service-disabled veteran and someone he identified as its owner and primary manager “did not actually have a role in the operations,” investigators allege.
In more than one instance, court records show, that person did not sign necessary paperwork officials received for the projects and had no knowledge or involvement in the contracts.
“As a result of Defendant and his co-conspirators’ misrepresentations and false and fraudulent statements, the federal government paid CA Services a total of $11,891,243.45 for the six … programs,” authorities wrote.
Kozerski, 62, was charged with one count of wire fraud.
During his arraignment Tuesday in Ohio, he entered a guilty plea, court records show.
Kozerski was released on a $20,000 bond. Sentencing is scheduled for July 22.