Praetorian Shield and Two Individuals Agree to Pay $221,000 to Resolve False Claims Act Allegations Connected to Fraudulently Obtained Small Business Contracts and Kickbacks

Praetorian Shield Inc., formerly a Delaware company, and Grady Baker, and his wife Ranya, have agreed to pay the United States $221,000 to settle allegations that they violated the False Claims Act by fraudulently obtaining small business set-aside contracts.

This settlement further resolves allegations that Praetorian and the Bakers violated the Anti-Kickback Act. The settlement is based on Praetorian Shields’ and the Bakers’ financial condition and ability to pay.

“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” said U.S. Attorney Kelly O. Hayes 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.”

The settlement resolves allegations that between 2016 and 2023, Praetorian and the Bakers falsely represented that Praetorian was a Woman-Owned Small Business (WOSB) and a Service-Disabled Veteran Owned Small Business (SDVOSB). They made these false claims to obtain small business set-aside contracts awards from the Department of Homeland Security (DHS) for security services at federal buildings.

Praetorian was a purported small business subcontractor to Paragon Systems Inc. (Paragon), one of the federal government’s largest security guard providers at federal buildings throughout the U.S. The U.S. alleged that Paragon, acting through former high-ranking corporate executives, knowingly engaged in a fraudulent scheme to use purported small businesses that it controlled, such as Praetorian, to obtain DHS set-aside contracts for which Paragon was itself ineligible.

Grady Baker, who served as Paragon’s vice president of operations, allegedly instructed Ranya Baker to incorporate Praetorian using her middle and maiden names. Ranya Baker did not typically use her middle or maiden names for business or personal purposes. The Bakers controlled Praetorian, along with other high-level Paragon executives, and Grady Baker served as Praetorian’s de facto director of operations.

Through Grady Baker and other Paragon executives’ operational control, the Bakers and Praetorian knew that Praetorian was not an eligible small business. But they forged forward with devising the scheme to obtain DHS small business contracts for Paragon.

This settlement also resolves allegations that Praetorian and the Bakers provided more than $188,000 in kickbacks to Paragon executives and that Ms. Baker received $98,000 in kickbacks from another Paragon subcontractor, Patronus Systems Inc.

In November 2024, the United States resolved related civil claims against Paragon, recovering $52 million. Additionally, another purported small business, Athena Services International LLC (ASI), and its joint venture with Paragon, Athena Joint Venture Services LLC (AJVS) — along with their owner, Alisa Silverman — previously agreed to pay more than $1.6 million to resolve their liability in connection with the alleged Paragon small business contracting fraud scheme.

This settlement is the result of a coordinated effort between the Civil Division’s Fraud Section, U.S. Attorney’s Office for the District of Maryland, and DHS-OIG.  U.S. Attorney Hayes commended Assistant U.S. Attorney Sarah Marquardt and Senior Trial Counsel A. Thomas Morris, Civil Division, Commercial Litigation Branch, Fraud Section, who handled this matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.