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Focus on Regulation

Tag Archives: Fraud

Indictment in $40M Alleged Fraud Case Signals Increased Scrutiny of SDVOSB Government Contractors

On December 1, 2017, the U.S. Department of Justice announced the federal grand indictment of an army veteran for allegedly engaging in major government program fraud by using his status as a service-disabled veteran to obtain contracts set-aside for service-disabled veteran-owned small businesses (SDVOSBs), despite the fact that he did not control the management and daily operations of the company to which the contracts were awarded.

11th Circuit holds that companies may be indefinitely suspended on the basis of an indictment of an affiliate; no independent showing of wrongdoing is required

In a long awaited decision, the 11th Circuit Court of Appeals held that affiliates of Public Warehousing Company, K.S.C. (PW), which was indicted for fraud, may be suspended for periods in excess of 18 months even though they were not charged or otherwise implicated in the misconduct. Agility Defense & Government Services v. U.S. Dept.

U.S. Department of Education Takes Steps to Curb Student-Aid Fraud

The U.S. Department of Education announced in the Federal Register that it plans to develop new regulations to prevent fraud and promote proper use of federal student financial aid funds awarded to distance education students.  The May 1 announcement follows an earlier ED Office of the Inspector General report that described the increase in fraud-related incidents