A local woman is facing prison time after she submitted false information in order to receive millions of dollars in government contracts that were earmarked for “historically underutilized” areas.
Nicole Platt is charged with one count of making false statements to obtain a loan. She has officially plead guilty to that charge, according to a plea agreement filed Wednesday.
Court documents explain Platt submitted false information to participate in the Historically Underutilized Business Zone (HUBZone) Program, which is run through the Small Business Administration.
The HUBZone Program was created to encourage small business growth. Through the program, the federal government sets aside contracts in business zones suffering from high unemployment and low income. A HUBZone certified business can win the federal contracts that have been set aside.
Each certified business must be at least 51% owned by a community development corporation, an agricultural cooperative, an Alaskan Native corporation, a Native Hawaiian organization, or an Indian tribe.
Each business must also have its principal place of business located within a HUBZone and verify that 35% of its employees live in a HUBZone. Some of Milwaukee’s designated HUBZone’s include the Washington Park, Midtown, Sherman Park, Menomonee Valley, Lincoln Village, Burnham Park and Havenwoods neighborhoods.
Businesses are also required to re-certify every year that they have met HUBZone requirements.
Nicole Platt owned Milwaukee-based
Broadway Construction. She is also the daughter of
Richard Platt, the owner of Franklin-based
Platt Construction.
Nicole Platt worked at Platt Construction from January 2015 through December 2020, according to the plea agreement. The business was not eligible for the HUBZone program.
Platt incorporated Broadway Construction in August 2017 and was certified through the Small Business Administration as a HUBZone business in July 2019.
HUBZone program rules require applicants to disclose any affiliation they might have with another business. However, Platt did not disclose her affiliation with Platt Construction.
“While an employee of Platt Construction, an entity ineligible for HUBZone contracts, Nicole Platt formed Broadway Construction LLC, at least in part to obtain federal HUBZone set-aside contracts,” according to the plea agreement.
Platt applied for 15 HUBZone contracts and was awarded seven due to the false information she submitted to the SBA. The seven contracts were worth more than $4.7 million. Broadway Construction profited $323,492 from the contracts after paying their subcontractors.
Platt faces up to two years in prison, according to the plea agreement. She will also be ordered to pay restitution. A final amount will be determined by the court.
“Nicole Platt deeply regrets her unfortunate mistake from nearly five years ago, improperly submitting incorrect information to the federal government concerning set-aside contract certification,” said
Craig Mastantuono, attorney at Mastantuono Coffee & Thomas SC, in a statement issued Wednesday. “This plea agreement is the result of Ms. Platt’s cooperation with the government to address her actions, and she will accept full responsibility in court. Ms. Platt is a local businesswoman with no previous criminal record who provides construction management services in the Milwaukee area through her company Broadway Construction, and she looks forward to moving past this error and continuing to be a contributing member of our community.”
