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Ex-CEO gets 6 years for SBA contract fraud

Friday - 6/21/2013, 12:29pm  ET

ALEXANDRIA, Va. (AP) -- The former CEO of an Arlington security contractor has been sentenced to six years in prison for illegally winning more than $150 million in government contracts that were supposed to have been set aside for disadvantaged and minority-owned businesses.

Fifty-three-year-old Keith Hedman had been CEO of Protection Strategies Inc. In March Hedman admitted that he secretly controlled another Arlington firm, Security Assistance Corp., where he had installed a Portuguese-American woman as figurehead CEO so it could be eligible for preferential treatment on government contracts.

Hedman also admitted paying $50,000 in bribes to a government employee for help in winning contracts.

Hedman personally profited by $1.5 million from the scheme.

The six-year sentence was close to what prosecutors sought and more than the one- to two-year term sought by the defense.

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