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December 18, 2020 By cs

Court of Appeals issues important decision on application of False Claims Act to set-aside contracts

On December 3, 2020, the United States Court of Appeals for the Second Circuit issued its decision in United States v. Strock, a ruling that will significantly strengthen the hand of the government, and of qui tam whistleblowers, in False Claims Act cases against companies awarded government set-aside contracts but do not meet the requirements of the particular set-aside.

The contracts at issue in Strock were set aside for service-disabled, veteran-owned small businesses (SDVOSBs).

Still, the Court’s reasoning also applies to other types of set-aside contracts, such as small business, women-owned small business, or HUBZone set-asides.  This decision should hearten whistleblowers who have information about fraud in government contracting set-aside programs.

The Facts Of United States v. Strock

The government sued Strock Contracting, its owner Lee Strock, and one of Strock’s employees.  The government alleged that Strock set up a new company called Veteran Enterprises Company (VECO) to bid on SDVOSB-reserved contracts from the Army, Air Force, and Veterans Administration. Strock, however, was not a disabled veteran.  Instead, he recruited another individual, a disabled veteran named Terry Anderson.

Keep reading this article at: https://www.natlawreview.com/article/court-appeals-issues-important-decision-application-false-claims-act-to-set-aside

Read the full decision in this case at: https://www.ca2.uscourts.gov/decisions/isysquery/36dc4bcd-69b0-4890-b0e2-56e98757e39f/3/doc/19-4331_opn.pdf#xml=https://www.ca2.uscourts.gov/decisions/isysquery/36dc4bcd-69b0-4890-b0e2-56e98757e39f/3/hilite/

Filed Under: Government Contracting News Tagged With: false claims, False Claims Act, fraud, front, qui tam, SDVOSB, set-aside, small business, U.S. Court of Appeals, whistleblower

October 14, 2015 By AMK

Mass. AG cracksdown on DBE/MBE misrepresentations in subcontracts

The Massachusetts Attorney General is taking action to ensure that general contractors working on public construction are complying with state requirements to use DBE/MBE subcontractors.

Massachusetts sealIn August 2015, the Attorney General filed suit (Comm of MA v. CTA Construction Co., Inc. et al., Suffolk Superior Court Civ. Action No. 2015-02491) against multiple contractors for allegedly violating the Massachusetts False Claims Act by making misrepresentations over their compliance with requirements for working with Minority Business Enterprises (MBE), Women Business Enterprises (WBE) and/or Disadvantaged Business Enterprises (DBE).

The defendant contractors immediately settled for a combined $1.4 million.

Keep reading this article at: http://www.jdsupra.com/legalnews/attorney-general-crackdown-on-dbe-mbe-58815/

Filed Under: Uncategorized Tagged With: commercially useful function, corruption, DBE, False Claims Act, fraud, front, MBE, misrepresentation, pass-through, WOSB

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