CORRECTION: Lisa Hatch was not personally sentenced in federal court. She entered a guilty plea on behalf of the corporation of which she is the sole shareholder and director.
Construction Service Corporation Inc., was sentenced Wednesday in Boise federal court to three years of probation and fined $65,000 for fraud related to government contracting, U.S. Attorney Wendy J. Olson announced.
On March 28, Lisa Hatch, the sole shareholder and director of Construction Service Corporation Inc., entered a guilty plea on behalf of the corporation to defrauding the U.S. Department of Agriculture on a $274,283 contract for roofing work to be performed at a research facility in Corvallis, Ore. The contract was awarded to the company on the basis that it was an eligible HUBZone entity, when in fact it was not, according to court documents.
The U.S. Small Business Administrations HUBZone program encourages economic development in historically underutilized business zones through the establishment of preferences in federal contracting opportunities. Construction Service Corporation admitted that it made false statements to the SBA concerning its eligibility for HUBZone contracts.
By falsely representing its eligibility for a federal contracting preference, this defendant obtained federal funds that should have gone to a contractor that was actually prioritizing economic development in underserved areas, Olson said in a news release.
Construction Service Corporation also pleaded guilty to defrauding the U.S. General Services Administration in relation to the Federal Surplus Property Program. As an entity qualified under the SBAs 8(a) program, Construction Service Corporation was eligible to acquire federal surplus equipment. The defendant corporation admitted to transferring surplus property to an individual who was not eligible to acquire surplus property.
Hatch, served on the Idaho Public Works Contractors License Board from January 2009 through September 2011.