‘Rent-a-Vet’ Scam Proves Costly to Taxpayers, Businesses

March 31, 2012

Federal agencies have awarded tens of millions of dollars in taxpayer-funded contracts to businesses operating in Ohio that claimed to be owned and controlled by military veterans with service-related disabilities, only to conclude the companies lied to the government when they said a disabled veteran was in charge, a Dayton Daily News examination has found.

The businesses were part of the federal Service-Disabled Veteran-Owned Small Business program, which gives small companies owned and operated by America's wounded warriors special preference in obtaining lucrative government contracts.

Government watchdogs say hundreds of millions of dollars in public funds have gone to ineligible companies under the program, which calls upon all federal agencies to award at least 3 percent of the value of their contracts to disabled-vet businesses. 

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