A Massachusetts company has been sentenced in connection with disadvantaged business fraud.

Transit Safety Management Inc. (TSM), a Georgetown consulting company, was recently sentenced with making a false statement in connection with its certification for favored contracting status. The company was sentenced to five years of probation and a fine of $84,000. TSM pleaded guilty in February.

TSM provided consulting services to the railroad industry, focusing on safety and operations management. Shortly after being founded in 1999, TSM’s owner certified the company as a “disadvantaged business enterprise” (DBE). As a result, the company was able to take advantage of federal regulations promoting the participation of minority and disadvantaged businesses in federally-funded public construction contracts.

TSM had to make yearly affirmations that it was still eligible and that nothing had changed that would affect its eligibility for the favored DBE status. According to court documents, TSM’s owner was hired as a full-time employee with a federal agency in 2005 and could not control TSM under the regulations. TSM failed to disclose this change. The company admitted to making approximately $160,000 in profits.