SAN FRANCISCO, CA, April 19, 2006 /PRNewswire/ -- Lloyd Chapman, President of the American Small Business League has filed his third suit in Federal court today against the Small Business Administration (SBA). The suit was filed under the Freedom of Information Act after the SBA refused to release the name of a government contractor which the SBA's Inspector General had recommended be debarred for intentionally misrepresenting its size as a small business in order to illegally obtain Federal contracts set aside for small firms.

The recommendation was made to SBA Administrator Hector Barreto in June 2005 and was subsequently reported in the Inspector General's semiannual report to Congress. There have now been eleven Federal investigations that have uncovered fraud, abuse, loopholes, and a lack of oversight in small business contracting programs. Several of the investigations reported that billions of dollars in Federal small business contracts were actually awarded to Fortune 1000 firms and their subsidiaries.

Under section 16d of the Small Business Act, falsely claiming to be a small business in order to receive a Federal small business contract is a felony carrying a penalty of up to ten years in prison, a $500,000 fine, and permanent debarment from government contracting.

To date, Administrator Barreto has failed to take action to debar any firm for contracting fraud and only one firms has been fined.

"I am sick and tired of the Federal government turning a blind eye to blatant felony contracting fraud," said Lloyd Chapman, President of the American Small Business League. "The SBA Office of Inspector General would not have recommended that this firm be debarred unless they had conducted an exhaustive investigation and were absolutely sure the firm is guilty. I intend to take every legal option available to expose this firm and see that it is prosecuted to the fullest extent of Federal and civil law.

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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