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Staffing firm pleads guilty to false statements

July 20, 2009

Patriot Services Inc. and its owner/president, Stephanie Blackmon, have each agreed to plead guilty to a one-count charge filed Friday in U.S. District Court in Kansas City, of making a false statement to the Small Business Administration (SBA). 

Patriot supplies temporary staffing services to various agencies and departments of the U.S. government at locations throughout the United States. Under separate plea agreements, which are subject to court approval, Patriot and Blackmon have agreed to cooperate with the Department's ongoing investigation.

Blackmon admitted to providing false information to the SBA so that Patriot could qualify for certification under Section 8(a) of the Small Business Act. Specifically, Blackmon concealed the involvement of her former employer, who was not an economically disadvantaged person, in the management and operations of Patriot because revealing his involvement would have compromised Patriot's chances of receiving 8(a) certification. By securing 8(a) certification, Patriot qualified for government contracts specifically set aside for 8(a) companies.

Blackmon faces a maximum sentence of two years in prison and a fine of $5,000 for the false statement charge and Patriot faces a maximum fine of $5,000.