In a recent settlement, Delaware-based Praetorian Shield Inc. and two individuals, Grady Baker and his wife Ranya, have agreed to pay the U.S. government $221,000. This agreement comes in response to allegations of committing fraud to obtain small business set-aside contracts and engaging in kickback schemes, according to a statement put forth by the U.S. Attorney's Office for the District of Maryland. The Bakers and their company were implicated in misrepresenting Praetorian Shield as a Woman-Owned Small Business (WOSB) and a Service-Disabled Veteran-Owned Small Business (SDVOSB), which it was not.
U.S. Attorney Kelly O. Hayes criticized the Bakers' actions for undercutting the federal initiative designed to support real small, disadvantaged businesses, "The Bakers’ conduct in fraudulently obtaining government small business contracts thwarts the purpose of the small business program, which is meant to support small and disadvantaged businesses, and deprives legitimate businesses of opportunities intended by Congress." The financial condition and the ability of Praetorian Shield and the Bakers to pay influenced the settlement amount. The Bakers had set up the company using Ranya's middle and maiden names in what seemed to be an attempt to conceal their tactics and affiliations.
Praetorian was a subcontractor to Paragon Systems Inc., a prominent security guard provider at federal buildings nationwide. The allegations state that from 2016 to 2023, Praetorian and the Bakers were not only falsely classified as a small business to win Department of Homeland Security contracts but also instrumental in a kickback scheme involving over $188,000 to Paragon executives. Ranya Baker allegedly received kickbacks of $98,000 from another vendor, Patronus Systems, Inc.
Fallout from this scheme has been extensive and costly. In November 2024, Paragon Systems settled its part in the civil claims for $52 million. Athena Services International LLC and its joint venture with Paragon also settled, paying over $1.6 million. Praetorian Shield's settlement contributes to the overall effort to right the wrongs of this fraudulent activity, an effort comprised of the U.S. Attorney's Office, DHS-OIG, and the Fraud Section of the Civil Division’s Commercial Litigation Branch. "This settlement demonstrates our office’s commitment to protecting the integrity of the federal contracting programs and to holding accountable those who seek to gain an unfair advantage through deception," Hayes added, underlining the government's stance on the issue.
Those interested in learning more about the U.S. Attorney’s Office for the District of Maryland or who wish to report fraud can find resources on its official website.
