A disturbing pattern of deception has surfaced regarding lucrative government contracts intended for Native-owned businesses. Undercover recordings reveal executives admitting to exploiting a program designed to support these communities, instead diverting millions of dollars through questionable practices.
Ricky Longhurst, a Senior Account Executive at Cherokee Federal, bluntly described the situation as “cheating.” He confessed that companies are falsely claiming Native ownership to gain access to exclusive government contracts, a system built on trust and intended to foster economic opportunity.
The scheme, as detailed by Mike Montgomery, President of Chenega Architecture and Design, involves a carefully constructed revenue split. While 37% of profits are nominally returned to the tribe for infrastructure, a substantial 63% remains within the business itself.
Montgomery acknowledged the inherent contradiction, admitting he is not Native American. He explained that the companies employ experienced business executives while maintaining a board comprised of members from the Chenega Tribe in Alaska, creating a facade of legitimate ownership.
This isn’t an isolated incident. Previous undercover footage featured Melayne Cromwell, a Contract Manager at ATI Government Solutions, revealing that her company only performs 20% of the contracted work, outsourcing the remainder while still collecting full payment.
These companies are leveraging the 8(a) program, designed to help small, disadvantaged businesses, to secure contracts worth over $100 million. The incentive, according to Montgomery, lies directly in the Native Alaskan ownership status.
The revelations prompted swift action from the Small Business Administration. Administrator Kelly Loeffler announced the suspension of 1,091 firms from the 8(a) Program and pledged immediate measures to address the abuse.
The investigation highlights a critical vulnerability within the system, exposing how easily good intentions can be manipulated for financial gain. The focus now shifts to strengthening oversight and ensuring that these vital resources reach the communities they are meant to serve.
