By Debbie Gregory.

A 53-year-old business owner and a 57-year-old service-disabled vet have pleaded guilty to engaging in a pass-through scheme designed to fraudulently land $13.8 million in federal contracts set aside for veteran-owned small businesses.

Jeffrey Wilson and his partner in crime, Paul Salavitch, hatched a “rent a vet” scam that led to the charges.

By listing Salavitch as the person responsible for the day-to-day operations of Patriot Company, a construction business owned by Wilson, they were able to leverage Salavitch’s disabled status to access lucrative contracts that the company otherwise wouldn’t qualify for.

As a result, the company 20 government contracts worth almost $14 million, with some worth as much as $4.3 million apiece.

The fraud was uncovered in 2013, when the Department of Veterans Affairs visited Patriot Company’s headquarters unannounced. Of course, Salavitch was nowhere to be found; Salavitch had a job as a federal employee with the Department of Defense in Leavenworth and did not actively run the company, located in Kansas City.

Salavitch told the Missouri Division of Purchasing and Materials Management that Patriot Company was a “legitimate service-disabled veteran-owned small business,”  knowing that it wasn’t.

Under the terms of their plea agreement, Wilson now faces a sentence of up to 18 months in prison without parole. Salavitch faces up to one year in prison without parole. Both also consented to a civil forfeiture agreement of about $2.1 million.

While thousands of combat wounded and service disabled men and women work hard to succeed in American business, corrupt business owners continue to defraud the U.S. government by falsely claiming they are eligible for these set-asides.

When these fraudsters illegally secure SDVOSB contracts, our nation’s taxpayers and legitimate service-disabled veteran-owned small businesses suffer.

By Debbie Gregory.

It’s encouraging to see military veterans take advantage of entrepreneurship opportunities available to them, especially when it comes to franchise opportunities. For many, a franchise business offers them the chance to be their own boss, but it comes with an established structure. Someone’s already proven that this works.

According to the International Franchise Association’s VetFran program, approximately 14 percent of franchises are owned by veterans.

Having served, many of these entrepreneurs find that their military experience easily translates into franchise success. Franchisors believe that veterans make for great franchisees for several reasons. Many of the factors that made veterans excel within the military environment make them ideal for franchisees.

The world of franchising represents a marriage between the self-start world of entrepreneurship and the rigorous discipline needed to follow a set of instructions and execute on a proven plan. The ideal franchisee is someone who can take direction and work within guidelines provided by the franchisor, but who can also effectively lead a team and get things done.

Attention to detail, knowledge, and understanding of chain of command and how things work contribute to their success.

Most brands offer a discount to veterans and people with connections to the military, most commonly a markdown on the initial franchise fee, averaging a little more than 18 percent. Discounts are typically restricted to people opening their first franchise.

Veteran-owned franchisees contribute to the economy not only for the franchisee, but also for their fellow veterans: franchisees are 30 percent more likely to hire their fellow veterans than their civilian counterparts.

The largest numbers of veteran-owned franchises are in California, Texas and Florida, which have the first-, second- and fifth-highest military populations.

Remember, doing your homework about the franchise first will help you gain a solid understanding of what to expect as well as the risks that could be involved. With that said, more than 87 percent of veteran-run franchises stayed in business over the past three years.

By Debbie Gregory.

The Institute for Veterans and Military Families is proud to host the sold-out Veteran EDGE Conference, which will take place February 16-18, 2018 in Austin, TX.

Registration, which is now closed, was open to veteran and military spouse business owners by invitation only. To be considered, attendees were required to meet one of the following criteria:

• Entrepreneurship Bootcamp for Veterans (EBV) graduates
• Entrepreneurship Bootcamp for Veterans’ Families (EBV-F) graduates
• Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE) graduates
• Coalition for Veteran Owned Business (CVOB) members
• Vet50 honorees
• VetSmallBiz Growth Challenge 2.0 finalists

Attendees of the three-day educational event will have access to breakout sessions, business experts, and networking opportunities. They will also learn how to grow their businesses by finding mentors, connecting with networks, and accessing capital.

Additionally, the top 50 Fastest-Growing Veteran-Owned Businesses in the country will be honored during the Vet50 Awards Ceremony.

Stakeholders, IVMF program graduates, and veteran and military spouse-owned businesses from around the country will be gathering at the conference to network and learn about the latest opportunities, best practices, and resources available to their growing companies.

By Debbie Gregory

Potentia Labs, the developer of a unique interactive e-learning platform that teaches emotional wellness skills like resilience and mindfulness, has been awarded a contract by the U.S. Department of Veteran Affairs (VA) to create a program specifically for veterans suffering from PTSD and depression.

Potentia Labs won the Department of Veterans Affairs Industry Innovation Competition.

Potentia works via an online platform and mobile app, concentrating on positive traits, such as resilience, confidence, optimism and mindfulness.

Dustin Milner, cofounder of Potentia, said that due to their military training, veterans often have trouble attending and sticking with traditional therapy.

Many veterans who are diagnosed with PTSD have trouble acknowledging weakness. By building on veterans’ existing strengths to help them become the best version of themselves, Potentia works on every area of psychological, social, and emotional well-being and performance. Backed by science, the tool is designed to provide experiences on a daily basis, and it only takes 3 to 5 minutes a day.

The connection to veterans is personal for the company, according to Milner. Cofounder Eric Lenhardt is an Army veteran who has undergone treatment for PTSD in the past.

Potentia’s first-of-its-kind app is packed with dynamic courses created by experts to help build skills like mental toughness and emotional agility—the tools everyone needs to navigate life, work, and family.

The company aims to customize and expand the platform by mixing together gaming technology, instructional design, and expertise from psychologists.

Beginning in July, 2018, the platform will begin an 18-month trial at a California VA center.

By Debbie Gregory.

As the result of a plea deal, Defense Contractor Philip A. Mearing, the former president of Global Services Corporation, will serve prison time for bilking the government out of more than $15.4 million.

In 2004, Mearing, along with his co-conspirators Kenneth Bricker and Ken Deines, made an agreement where fraudulent payments were made to Global Services Corporation to Bricker’s two corporations, Tempo and BPM, regarding hundreds of invoices for work and services done by Global that were never done by Tempo and BPM.

In a separate conspiracy, Mearing, Deines, and William Hutsenpiller, the former Comptroller for Norfolk Ship Support Activity, conspired to submit false claims to the government via false invoices that resulted in a loss of approximately $1.8 million.

Deines was sentenced to 18 months in prison. Bricker was sentenced to four years. Hutsenpiller, a former high-ranking civilian employee of the Navy, was sentenced to three years and four months in prison for his role in the case.

The combined loss amount to the government from the two separate conspiracies is $15,413,029.76.

Mearing pleaded guilty last June to one count of conspiracy to commit wire fraud.

According to Mearing’s defense team, Global Services, which was started Mearing’s uncle, was on the brink of failure when Mearing was hired, and it was Mearing who turned the company fortunes around, securing over $450 million in government contracts prior to his resignation.

A hearing has been scheduled for December 12^th to determine the total amount of restitution that should be paid back. So far, $870,304.20 has been recovered. Under the plea deal arrangements, the maximum time Mearing will serve is five years.