Attorney General Brian L. Schwalb today filed a lawsuit against Sequoia Row Consulting, LLC (Sequoia Row), and its owner and CEO, Paul Lawrence, for exploiting DC’s Certified Business Enterprise (CBE) program and fraudulently securing over $13 million in DC government contracts reserved for DC local businesses.
Sequoia Row provides construction and janitorial services in the District of Columbia. In its suit, the Office of the Attorney General (OAG) details how Sequoia Row and Lawrence fraudulently maintained certifications as a local, small, and resident-owned business—which gave the company preference in the local government contracting process—despite being ineligible because the company does not have a primary office in the District and the owners reside in Georgia. Using its fraudulent certifications, Sequoia Row bid on and was awarded more than three dozen DC government contracts, including at least 32 contracts specifically reserved for local businesses. OAG also illustrates how for years, Sequoia Row misclassified janitorial workers as independent contractors instead of classifying them as employees—depriving them of overtime wages, prevailing wages, paid sick leave, and other benefits—and alleges that the company failed to pay what it owes to DC workforce programs, including workers’ compensation, unemployment insurance, and paid family leave.
“Sequoia Row and its owner, Paul Lawrence, defrauded the District, harmed workers and taxpayers, and stole opportunities from real local businesses,” said Attorney General Schwalb. “This lawsuit puts companies on notice that if they attempt to profit by cheating programs intended to support and grow our local economy, or by depriving workers of wages and benefits they earn, they will be held accountable.”
To help support local businesses, create local jobs, and expand the District’s tax base, DC government agencies are required to reserve contracts of $250,000 or less for certain types of certified small and local businesses. For many other DC government contracts, DC’s competitive scoring system awards extra points to certified small, local, and resident-owned businesses. The District’s CBE program is operated by the Department of Small and Local Business Development (DSLBD).
OAG alleges that Sequoia Row and Lawrence violated multiple District laws, including the False Claims Act and DC wage and hour laws by:
- Lying to District agencies to fraudulently obtain and maintain CBE certifications. Sequoia Row has not had a principal office in DC where senior managers worked—a threshold requirement for CBE certifications—since at least 2017. It fraudulently listed various DC addresses, including addresses for virtual office spaces, on its certification forms. Lawrence has not been a District resident since at least 2018, when he moved to Maryland, and he has been a Georgia resident since at least 2021.
- Illegally securing at least 32 government contracts worth over $13 million that were reserved for CBEs. From 2018 through 2025, Sequoia Row bid on and was awarded more than three dozen DC government contracts, including at least 32 contracts that only certified business enterprises were eligible to bid on and receive. These include multiple contracts for cleaning services, building maintenance, and repair work at District government facilities. For some of these contracts Sequoia Row was also awarded preference points designated for small, local, and resident-owned businesses during the evaluation process, making its bids more competitive. Between May 2018 and March 2026, the District paid Sequoia Row in excess of $16 million in total on more than 200 invoices billed, including more than $13 million on contracts that were specifically reserved for certified local businesses.
- Depriving dozens of janitorial workers of wages and benefits: Sequoia Row secured at least 15 contracts for janitorial services in DC facilities. Under DC law, these workers should have been classified as employees. However, until at least 2024, Sequoia Row misclassified these janitors as independent contractors, and in the process, deprived them of overtime pay, paid sick leave, prevailing wages, fringe benefits, and other employment rights under District law. In 2024, after a federal investigation by the U.S. Department of Labor into one janitorial contract, Sequoia Row reclassified janitorial workers as employees and paid back wages to workers on that contract. However, it never repaid back wages on any of its other contracts.
- Evading obligations to pay what it owes to DC workforce programs, including workers’ compensation, unemployment insurance, and paid family leave programs by misclassifying workers as independent contractors.
With this lawsuit, OAG is seeking to recover the funds the District spent on the contracts that Sequoia Row fraudulently obtained, as well as treble damages for violations of the District’s False Claims Act and civil penalties. OAG is also seeking restitution for workers who were illegally misclassified and deprived of wages and benefits.
A copy of the complaint is available here.
This matter is being handled by Assistant Attorneys General Cara Reichard, Kara Mahoney, and Eric Anthony, Former Assistant Attorney General Morgan Sperry, Investigator Na’eelah Bakari, Paralegal Diego Pereira, Assistant Chief for the Workers’ Rights and Antifraud Section Dennis Corkery, and Section Chief Graham Lake.
OAG’s False Claims Act Enforcement Authority
Under the District’s False Claims Act, it is illegal to knowingly make false statements to obtain payment from the District, or to conceal, avoid, or decrease an obligation to pay the District. Those who break the law can face extremely steep costs—the District can file a lawsuit seeking to recover three times any amount that is owed (treble damages) and can also obtain civil penalties for each violation of the law. OAG has independent authority to investigate and take legal action under the False Claims Act.
OAG’s Efforts to Protect Workers
OAG’s Workers’ Rights and Antifraud Section is dedicated to fighting wage theft, protecting District workers, and ensuring that businesses in the District compete on a level playing field. Since AG Schwalb became the District’s elected, independent Attorney General in January 2023, OAG has secured more than $23 million for workers and the District. In total, since gaining independent wage theft enforcement authority in 2015, OAG has secured over $39 million by investigating and bringing enforcement actions against employers who violate District law. OAG’s wage theft enforcement efforts have focused on industries with high populations of vulnerable workers, such as construction, restaurants and hospitality, healthcare, and the gig economy. Learn more about OAG’s efforts to uphold workers’ rights over the last year in OAG’s 2025 Labor Day Report.
How to Report Wage and Hour Violations
Workers who believe that their rights have been violated, or that they have experienced wage theft or other wage and hour violations, can contact OAG by calling (202) 724-7730 or by emailing workers@dc.gov or trabajadores@dc.gov.
How to Report False Claims
Individuals who suspect contractor fraud against the District are encouraged to contact OAG by emailing ReportFraud@dc.gov.