Small Business Contract Fraudster Owes $813,244 in Penalties

A Texas man convicted of wire fraud in 2022 owes the US government an $813,244 civil penalty in a False Claims Act suit for partaking in a scheme to improperly win government construction contracts set aside for service-disabled, veteran-owned small businesses, a federal court said.

The issues material and necessary to Michael Angelo Padron’s criminal convictions establish his liability under the FCA, Judge Rodney Gilstrap of the US District Court for the Eastern District of Texas said in a Tuesday order. Padron did not oppose the government’s summary judgment motion.

• The FCA suit, filed by whistleblower Steven Wibracht, alleged that ...