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 How Wall Street Hollowed U.S. Federal Set-Aside Programs

(A $120B+ Engine of Small Business Fraud) Private Equity Corruption Funnel - Interactive View

🌟 The Private Equity Corruption Funnel

How Wall Street Hollowed U.S. Federal Set-Aside Programs ($120B+ engine of fraud)

  • WOSB — Women-Owned Small Business
  • 8(a) — Minority-Owned Disadvantaged Business
  • SDVOSB — Service-Disabled Veteran-Owned Small Business
  • HUBZone — Historically Underutilized Business Zone

➔ $120B+ Annual Flow of Earmarked Small Business Dollars

Private Equity Shell Prime Networks

  • Sagewind Capital: Tria Federal, Axient, DTS, Aeyon
  • Arlington Capital: Tyto Athene, Octo Consulting, Polaris Alpha
  • Blue Delta Capital: Sev1Tech, NT Concepts

Tactics:

  • WOSB pass-throughs
  • 8(a) manipulation
  • SDVOSB pass-throughs
  • FAR 52.219-14 violations
  • Retaliation patterns
  • Rent-a-resume schemes
  • Strategic "skins"
  • Fraudulent JV structures
  • The Halifax Group: Pyramid Systems, Trident Technologies
  • AE Industrial Partners: BigBear.ai, Gryphon Technologies

Abuse Types:

  • WOSB + SDVOSB abuse
  • WOSB + 8(a) ghosting
  • Veritas Capital: Peraton, Guidehouse, Perspecta

Advanced Tactics:

  • Strategic lobbying
  • Redefine SBA + FAR rules to legalize PE rollup shells
  • Capture of oversight definitions
  • PE Fund Limited Partners (LPs)
  • Hedge Funds
  • Ultra High Net Worth Investors

➔ Extract billions in diverted government contracting revenue under the guise of "small business" participation.

  • Legitimate Small Businesses (shut out)
  • U.S. Taxpayers (pay inflated PE margins)
  • Government Compliance Integrity (regulatory capture)
  • Whistleblowers (face retaliation, blacklisting, career destruction)

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