U.S. government awards millions in contracts to companies owned by fictitious people

Tuesday, August 13, 2013 by: J. D. Heyes
Tags: U.S. government, business contracts, fraud

eTrust Pro Certified

Delicious Pin It
(NaturalNews) One of the major problems with the size of the American bureaucratic state is the fact that it is difficult, if not impossible, to manage. Oversight of programs is haphazard and spotty, if it exists at all, and the few people assigned to ensure that the American taxpayer isn't being mistreated face the insurmountable task of accounting for every dollar.

What's more, human nature being what it is, if you provide a plethora of benefits to people without adequate accountability, those benefits are going to be abused, pure and simple. One of the most recent examples of this occurred in Maryland, where, according to The Washington Examiner, a woman pleaded guilty "to charges related to setting up at least 15 false businesses in six states that received government contracts despite often being registered to people who did not exist."

'The case illustrates how little federal officials know...'

The paper said that the false businesses would subcontract all work to other companies, then take federal dollars without paying the companies to actually do the work.

The guilty, Larayne Whitehead, 34, agreed to give up $2.4 million in illegal proceeds, along with a luxury car.

"The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the FedBid marketplace or was otherwise burdened with lawsuits or liens," said the plea bargain.

"The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases to register the businesses and by renting commercial mail box store fronts."

Per the Washington Examiner:

The case illustrates how little federal officials know about where goods and services they purchase come from, with one Whitehead firm selling ammunition to the Army, according to government contracting records, thus raising questions about whether bullets of dubious quality wound up in soldiers' hands.

With apparently little oversight and investigation into the firm's background, the Department of Homeland Security nevertheless issued it a government credit card "to use for payment for goods provided pursuant to a government contract," on which the suspect tallied up $40,000 in charges.

In addition, this incident - like so much other fraudulent activity repeated across the federal bureaucracy every year - brings to light the severe lack of scrutiny of Americans receiving contracts under special conditions for small businesses and minorities, who are only required to self-certify, "and who the government is pressured to source goods through over established vendors, even for goods like ammunition, which few fly-by-night firms are legitimately equipped to manufacture or supply," the paper said.

Included in the gaggle of phony companies is the Emcompass Group, registered to a dilapidated house in Maryland. It was touted as a black-owned firm which got contracts to conduct work for many things - from English instruction to furniture sales, the paper found in an investigation:

As recently as last November, Sharper Consulting Inc., one of the companies used by Larayne Whitehead under her own name, got government business totalling nearly $145,000 by bidding on contracts for which only woman-owned businesses were eligible.

It got some $210,000 in business set aside for small businesses, and $19,000 in open competition. A phone call to its listed number went to an answering service that forwarded to a cell phone with no answer.

Set up to fail - you, the taxpayer

It's all standard procedure and a typical minority contracting scheme: The minority-owned company wins a contract that most other firms are not eligible to even bid on, but then has another company do all the work. Whitehead's scheme differed in one respect, however - she never paid her subcontractors.

Lax - or even non-existent - oversight by the federal government leads to such abuses of the taxpayer's money. And with the way the entire system of awarding contracts in this manner is set up, it is virtually impossible for the government to enforce rules forbidding firms from subcontracting work in the first place.

The group, Citizens Against Government Waste, is one of the best taxpayer watchdog groups in the country. But given the scope and size of the federal administrative branch, it's a tough job. Nevertheless, you can follow the organization's progress here.


Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.

Have comments on this article? Post them here:

comments powered by Disqus

Take Action: Support

Email this article to a friend

Permalink to this article:

Reprinting this article: Non-commercial use OK, cite with clickable link.

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...


Now Available at

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports
Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Flu shot kills 19-year-old, but vaccine industry still has total immunity against lawsuits
Here's a nutty fact: Eating more tree nuts lowers the risk of all-cause death by up to 20 percent
Six important facts you're not being told about lost Malaysia Airlines Flight 370
Malaysia Airlines Flight 370 now clearly a government cover-up: All evidence contradicts official story
10 other companies that use the same Subway yoga mat chemical in their buns
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
High-dose vitamin C injections shown to annihilate cancer
U.S. treating meat with ammonia, bleach and antibiotics to kill the '24-hour sickness'
USDA to allow U.S. to be overrun with contaminated chicken from China
Vaccine fraud exposed: Measles and mumps making a huge comeback because vaccines are designed to fail, say Merck virologists
Battle for humanity nearly lost: global food supply deliberately engineered to end life, not nourish it
Diet soda, aspartame linked to premature deaths in women

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...


Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...


Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at

Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of, the internet's No. 1 natural health news site. (Source:

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.