In fact, the veterans only received off-the-shelf products from Sunrise Shoes. The grand jury added that Lazzarino made sure veterans were steered to Sunrise by handing them the stores business card and making disparaging comments about other vendors. In a separate scheme, the grand jury said the two men defrauded the VA on therapeutic shoe-supply contracts totaling $59 million by lying about where the shoes were manufactured. The VA intended to buy only shoes made in the United States under the Buy American Act. Working with Lazzarino, Wong attempted to supply shoes that were made in China but were passed off as having been made in America, according to the grand jury. One of Sunrises employees, Jai Aing Chen, already pleaded guilty Dec. 6 to helping mislead the agency about the Chinese shoes. According to Chens plea agreement, Sunrise wound up winning only $196,000 worth of the Buy American business over six years, and the total value of the shoes supplied under the contract was $9,200. Chen, who admitted to one count of conspiracy, is to be sentenced March 14.
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