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Robert Bechtold, former vice president of Certified Manufacturing Enterprises, LLC (CME), has agreed to pay $35,000 to resolve allegations that he falsely represented the company's status to obtain set-aside government contracts, the U.S. Attorney's Office for the Northern District of Florida announced.

CME, previously based in Holt, Fla., was designated as both a Service-Disabled Veteran-Owned Small Business (SDVOSB) and a Native American Owned Small Business. The U.S. government contended that Bechtold violated the False Claims Act by misrepresenting CME's status as an SDVOSB to secure a contract with the Defense Logistics Agency.

"This resolution demonstrates our commitment to ensure that socially disadvantaged small businesses can fairly compete in the award of government contracts," U.S. Attorney Jason R. Coody said in a statement. "Individuals who fraudulently misrepresent eligibility for set-aside contracts will be held accountable."

Of the $35,000 settlement, $11,285 is designated as restitution. The settlement resolves allegations related to Contract No. SPE4A6-18-P-M255, which was intended for a legitimate SDVOSB.

Derrell D. Freeman, special agent-in-charge of the Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 5, emphasized the importance of integrity in government contracting.

"This settlement sends a clear message that any attempts to undermine fair competition will not be tolerated, ensuring our nation's defense is supported by principled partners," Freeman said.

The case was handled by Assistant U.S. Attorneys Mary Ann Couch and Marie Moyle, with assistance from the Defense Logistics Agency, Air Force Office of Special Investigations, and Defense Criminal Investigative Service.

The U.S. Attorney's Office noted that the claims resolved by the settlement are allegations only, and there has been no determination of liability.