# Navy Charges San Diego Contractor with Fraud

Alvin "Mick" McDonald Ruis Jr., a San Diego businessman and former horse trainer, has been federally indicted for allegedly defrauding the U.S. Navy through scaffolding contracts at the NAVSEA Southwest and Southeast Regional Maintenance Centers. The indictment alleges misrepresentation of small business status to secure contracts valued at up to **$17.6 million** and **$7 million** respectively. Legal defense has pleaded not guilty. This case underscores the critical importance of strict compliance with small business set-aside requirements and accurate representation in federal contracting.

- Procurement professionals should reinforce due diligence and verification processes for small business status claims to mitigate fraud risks.
- Contractors must ensure transparent and truthful disclosures regarding business size and ownership to avoid legal and financial penalties.
- Agencies may review and strengthen oversight mechanisms for set-aside contracts, especially in high-value maintenance and construction services.
- This development signals heightened enforcement focus on small business fraud within Navy regional maintenance contracting, impacting future bidding strategies and compliance programs.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 26, 2026

### Government Entities
- U.S. Navy (Navy)
- NAVSEA Southwest Regional Maintenance Center (NAVSEA)
- NAVSEA Southeast Regional Maintenance Center (NAVSEA)
- U.S. Small Business Administration (SBA)

### Vendors
- Vertical Horizon Scaffold (Small business contractor)
- Vertical Horizon Marine (Contract awardee)
- American Scaffold (Former company owned by Ruis)

### Sources
- [Mick Ruis Charged in San Diego Navy Contracting Fraud Case](https://hoodline.com/2026/09/ex-kentucky-derby-trainer-mick-ruis-indicted-in-san-diego-navy-scaffolding-fraud-case) - Hoodline