Praetorian Shield Inc., along with Grady Baker and his wife Ranya, have agreed to a settlement of $221,000 with the United States government. The settlement addresses allegations that they violated the False Claims Act by fraudulently securing small business contracts.
The agreement also resolves accusations under the Anti-Kickback Act. The financial terms are based on Praetorian Shield's and the Bakers' current financial status.
"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," stated Kelly O. Hayes, U.S. Attorney for the District of Maryland. "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."
Between 2016 and 2023, Praetorian Shield was accused of falsely claiming it was a Woman-Owned Small Business (WOSB) and a Service-Disabled Veteran Owned Small Business (SDVOSB) to obtain Department of Homeland Security (DHS) contracts for security services at federal buildings.
The company served as a subcontractor to Paragon Systems Inc., one of the largest providers of security guards for federal buildings across the U.S. It is alleged that Paragon used companies like Praetorian, which it controlled, to secure DHS set-aside contracts illegitimately.
Grady Baker allegedly instructed Ranya Baker to incorporate Praetorian using her middle and maiden names. Despite knowing Praetorian was not eligible as a small business, they proceeded with obtaining DHS contracts for Paragon.
Additionally, there are claims that over $188,000 in kickbacks were given by Praetorian and the Bakers to Paragon executives. Ms. Baker reportedly received $98,000 in kickbacks from another subcontractor, Patronus Systems Inc.
In November 2024, related civil claims against Paragon resulted in a $52 million recovery by the United States. Another entity involved in similar schemes paid over $1.6 million earlier.
This resolution results from cooperation between various departments including Civil Division’s Fraud Section and U.S. Attorney’s Office for Maryland among others. Assistant U.S. Attorney Sarah Marquardt and Senior Trial Counsel A. Thomas Morris were acknowledged for their roles in handling this matter.
It is important to note that these resolved claims are only allegations without any established liability determination.
Further details about reporting fraud can be found at www.justice.gov/usao-md or https://www.justice.gov/usao-md/community-outreach.
