Vienna-Based Consultant To Pay $4.8M For Kickback Claims

VIENNA, VA — A Vienna-based consulting group and its president and majority owner will make a $4.8 million settlement in relation to kickback allegations.

The settlement resolves federal civil claims under the False Claims Act and the Anti-Kickback Act. Under the Anti-Kickback Act of 1986, kickbacks are described as "improperly obtaining or rewarding favorable treatment" for government contract work.

Sage Consulting Group, Inc., a federal government contractor providing information technology services to the U.S. Department of Defense, and its president, Robert Pleghardt, are based in Vienna. According to prosecutors with the U.S. Attorney's Office in the Eastern District of Virginia, the contractor paid kickbacks to 8(a) certified companies, or small businesses owned by socially and economically disadvantaged residents, in order to receive subcontracts. Prosecutors allege the contracting group and Pleghardt falsely stated to government agencies that these types of small businesses would be conducting 50 percent of the work on these contracts. In reality, Sage conducted all of the work.

One former 8(a) certified company, Wete and Company, Inc. agreed to subcontract work for Department of Defense Education Activity to Sage in exchange for an hourly fee Sage paid for every hour of work subcontracted to Sage. Prosecutors allege that Pleghardt falsely represented in a proposal submitted to the Department of Defense Education Activity that Wate employees would work a task order when it was being done by Sage employees.

Another 8(a) certified company, Index Systems, Inc., agreed to subcontract work for the Department of Defense Education Activity and the Defense Human Resources Activity to Sage under a similar hourly fee scenario. According to prosecutors, Pleghardt falsely represented to Defense Human Resources Activity officials that Index employees would be working on the contract when all of the work would be performed by Sage employees.

The resolution of the kickback allegations was a collaboration between the U.S. Attorney’s Office for the Eastern District of Virginia, the Defense Criminal Investigative Service, and the General Services Administration Office of Inspector General.