FOR IMMEDIATE RELEASE
Thursday, February 26, 1998
Contact: Jeff Nelligan
Telephone: (202) 366-6312
OIG 2-98
MARYLAND MAN INDICTED
FOR ALLEGED FRAUD IN CLAIMING
DISADVANTAGED BUSINESS STATUS
The Department of Transportation’s Office of Inspector General today announced the indictment of George W. Hill of Fulton, Md., on allegations he defrauded the Section 8(a) disadvantaged business program.
If convicted of all counts, Hill faces potential penalties of 20 years’ incarceration and $1 million in fines.
Hill is charged with attempting to keep his business, Diversified International Sciences Corporation, in the Small Business Administration’s (SBA) Section 8(a) program despite his lack of proper qualification. Section 8(a) helps firms owned by economically or socially disadvantaged persons get contracts from government agencies, including the Department of Transportation. These contracts are often awarded without competitive bidding.
Hill is alleged to have submitted a series of personal financial statements to the SBA in 1992, 1993, and 1994 which falsely reported his true personal net worth and the full extent of his assets. Accurate reports would have disqualified him from participating in the Section 8(a) program. The investigation indicated, for example, that Hill failed to report the transfer of approximately $500,000 to an account in Switzerland. He also failed to report his ownership interest in a New Mexico apartment building.
The investigation was conducted jointly by special agents from the offices of three Inspectors General: U.S. Department of Transportation, U.S. Department of the Treasury and the National Aeronautics and Space Administration.
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