Based in part on Blackmon'smisrepresentations the SBA granted Patriot 8a status in November 2006
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Based in part on Blackmon'smisrepresentations, the SBA granted Patriot 8(a) status in November 2006.Shortly thereafter, Patriot entered into three 8(a) contracts to providetemporary staffing services to the Department of Veterans Affairs (VA)Consolidated Mail Outpatient Pharmacy (CMOP) in Leavenworth, Kan., one ofseven such VA pharmacies throughout the nation that process and distributemedical prescriptions to veterans Those contracts were valued atapproximately $5.4 million. SBA regulations prohibit a former employer of anydisadvantaged owner of an 8(a) applicant company from being involved in themanagement of the applicant company unless the SBA determines that the formeremployer does not have actual control of the applicant company or thepotential to control the applicant company. Blackmon's status as a service-disabled veteran also wasused by Patriot to try to secure government contracts.Although Blackmon knew that her former employer and others were actuallyrunning Patriot, she concealed their involvement so that the company couldsecure 8(a) certification. Infact, Patriot was actually controlled and operated by her former employer andothers, who operated another temporary staffing company that was not eligiblefor the 8(a) program. Although Blackmon was the actual owner/president ofPatriot, she was primarily a figurehead whose status as an African-Americanwas used to obtain 8(a) certification for Patriot, thereby enabling Patriot,and her former employer, to obtain government 8(a) set-aside contracts. According to court documents, Blackmon purchased and became the president ofPatriot in November 2003. By securing 8(a) certification, Patriotqualified for government contracts specifically set aside for 8(a) companies.
Specifically, Blackmon concealed theinvolvement of her former employer, who was not a socially and economicallydisadvantaged person, in the management and operations of Patriot becauserevealing his involvement would have compromised Patriot's chances ofreceiving 8(a) certification. Under the separate plea agreements, which are subject to courtapproval, Patriot and Blackmon have agreed to cooperate with the Department'songoing investigation.Blackmon admitted to providing false information to the SBA so that Patriotcould qualify for certification under Section 8(a) of the Small Business Act,a designation given to businesses owned and operated by socially andeconomically disadvantaged persons. District Court in Kansas City, Kan.Patriot supplies temporary staffing services to various agencies anddepartments of the U.S government at various locations throughout the UnitedStates. and its owner/president, Stephanie Blackmon, have eachagreed to plead guilty to a one-count charge of making a false statement tothe SBA, which was filed today in U.S. Small Business Administration (SBA), the Department ofJustice announced today Patriot Services Inc.
Small Business AdministrationWASHINGTON, July 17 /PRNewswire-USNewswire/ -- A Georgia temporary staffingcompany and its owner/president have agreed to plead guilty to making a falsestatement to the U.S. Georgia Temp Company and Its Owner/President Agree to Plead Guilty to Making aFalse Statement to the U.S. Such forward-looking statements are notpromises or guarantees of future performance and involve both known andunknown risks and uncertainties that may cause the actual results,performance or achievements of the Corporation to differ materially fromthe results, performance, achievements or developments expressed orimplied by such forward-looking statements. These assumptions,although considered reasonable by the Corporation at the time ofpreparation, may prove to be incorrect.Readers are cautioned not to place undue reliance upon any suchforward-looking statements. These statements are based on certain factorsand assumptions including expected growth, results of operations,performance and business prospects and opportunities. The use of terms such as "may","will", "should", "plan", "believes", "predict", "potential","anticipate", "expect", "project", "target", "estimate", "continue" andsimilar terms are intended to assist in identification of theseforward-looking statements. Statements related to the Corporation's projected revenues,earnings, growth rates, performance, business prospects and opportunitiesare forward-looking statements, as are any statements relating to futureevents, conditions or circumstances.
Foradditional information about the Company, visit Regarding Forward Looking InformationCertain statements in this press release which are not historical factsconstitute forward-looking statements or forward-looking informationwithin the meaning of applicable securities laws ("forward-lookingstatements") and are made pursuant to the "safe harbour" provisions ofsuch laws. Headquartered in the Greater TorontoArea in Ontario, Canada, Genesis has established a network of partnerswith engineering, manufacturing and distribution operations in Canada,the United States, the Middle East, Eastern Europe and Russia. Genesis deliverscustomized turnkey structural solutions including innovative light steelproducts, software packages, industrial equipment, training programs,professional services and support. However, the rules of the TSX also providethat such approval may be obtained in writing from shareholders withoutthe requirement to convene a shareholders' meeting for such purposes, andthe Corporation intends to rely on this exemption in connection with thePrivate Placement.Due to the fact that Codding and Vince Mifsud are anticipated tosubscribe for common shares and Warrants pursuant to the PrivatePlacement, the Private Placement will be a "related party transaction"for the purposes of Multilateral Instrument 61-101 - Protection ofMinority Security Holders in Special Transactions ("MI 61-101"). If only the Warrants issuedto Codding pursuant to the Private Placement are exercised immediatelyfollowing the completion of the Private Placement and the conversion ofthe Debentures, Bradley E. Baker will exercise control or direction over18,868,512 common shares of the Corporation, representing approximately36.13% of the issued and outstanding common shares of the Corporation.The number of common shares of the Corporation issuable pursuant to thePrivate Placement (assuming the exercise of the Warrants) will representin aggregate approximately 32.4% of the 30,982,858 currently issued andoutstanding common shares of the Corporation on a non-diluted basis.
Baker will exercise control ordirection over an aggregate of 16,868,512 common shares of theCorporation, representing approximately 33.59% of the issued andoutstanding common shares of the Corporation. Following the completion of the Private Placement and theconversion of the Debentures, Bradley E. Baker exercises control ordirection over the securities of the Corporation held by Codding, CoddingBaker Investments Inc., the Constance L Codding Trust and the BakerFamily Trust. Codding Trust,and the Baker Family Trust, is the registered and beneficial owner of$25,000 principal amount of Debentures which will, on the completion ofthe Private Placement, be converted into an aggregate of 309,915 commonshares of the Corporation Bradley E.