ATTORNEY NEWSLETTER
Competitor Blows Whistle
Alleged False Statements To Procure Contracts
Realtor Will Receive $1.35 Million Reward
In Fiscal Year 2022, private citizens and businesses helped the government recover $1.9 billion in cases of fraud against the government. The False Claims Act (FCA), 31 U.S.C. §§ 3729 et seq., allows individuals and businesses with knowledge of fraud against the federal government to initiate actions on behalf of the government to recover government funds paid out as a result of fraudulent claims. 31 U.S.C. §3730(b). The private individuals or businesses, known as “relators,” brought the cases, referred to as “qui tam” cases,” under the FCA. If the government recovers, these individuals are eligible for rewards. 31 U.S.C. § 3730(d). Relators received over $488 million in rewards during Fiscal Year 2022. Relators of fraudulent conduct are often employees, or former employees, or (in healthcare cases) patients of the business engaging in the fraud. The submission of false information related to eligibility for government contracts is one significant source of government fraud, as the reported case below illustrates. If you have credible information of government fraud in Los Angeles or elsewhere in California, call us today at (415)441-8669 and we can help. Our toll-free number is 1-888-50EVANS (888-503-8267).
Contractor Settles FCA Allegations For Over $7.7 Million
In a recent settlement announced by the U.S. Department of Justice,[1] a government contractor and its owner and Chief Executive Officer have agreed to pay the United States $7,759,693.92 to resolve allegations that they violated the False Claims Act by knowingly providing false information to the Small Business Administration relating to their eligibility for federal set-aside contracts intended for small businesses owned and controlled by socially and economically disadvantaged individuals.
“Small business set-aside contracts assist small businesses, including socially disadvantaged companies, to compete in the American economy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When companies misrepresent their eligibility for such contracts, they prevent others from receiving the business opportunities Congress intended.”
The SBA’s 8(a) business development program is intended to help small businesses owned and controlled by socially and economically disadvantaged individuals. Once certified, 8(a) Program participants are eligible to receive federal contracting preferences. The settlement announced today resolves allegations that defendants fraudulently obtained six 8(a) contracts during the period Jan. 1, 2015, to Dec. 31, 2021. More specifically, the government alleged that defendants failed to report distributions and payments to the owner’s family members and allegedly provided false information to SBA regarding the owner’s personal assets. The government further alleged that if defendants had provided accurate information it would have resulted in the contractor’s termination from the SBA 8(a) Program.
Fundamentals Of A Qui Tam Case
Qui tam cases begin with filing a complaint in the federal district court where the allegedly fraudulent conduct occurred. 31 U.S.C. § 3730(b). The complaint is filed under seal. The government has sixty days to review the allegations and decide whether to intervene. This review period can be extended. If the government decides to intervene, the government essentially takes over the litigation. 31 U.S.C. § 3730(c). If the government decides not to intervene, the relator has the right to continue the litigation on his or her own. If the relator continues the litigation alone, he or she receive a larger percentage of the amount the government eventually recovers. 31 U.S.C. § 3730(d). The relator may also pursue claims for wrongful retaliation against the defendant if the relator was fired or demoted as a result of blowing the whistle. 31 U.S.C. § 3730(h).
Contact Us
If you have credible information of government fraud call Ingrid M. Evans at (415) 441-8669, or toll-free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. In addition to FCA and CFCA whistleblower cases, Ingrid and Evans Law Firm, Inc. also handle bank fraud whistleblower cases under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program.
[1] Evans Law Firm, Inc. was not involved in the case in any way.
