Government Contractors Agree to Pay Over $3.6 Million to Resolve False Claims Act Allegations Involving Veteran-Owned Small Business Contracts

By the Constantine Cannon Whistleblower Team

On June 2, United States Attorney Gregory W. Kehoe announced that Officium Global LLC and Loyal Source Government Services LLC agreed to pay over $3.6 million to resolve allegations that they improperly obtained contracts set aside for service-disabled veteran-owned small businesses in violation of False Claims Act and Contract Disputes Act.[1]

What Was the Alleged Scheme?

According to the government, Officium Global improperly obtained and received payments for seven service-disabled set-aside contracts awarded between May 2017 and June 2018. To qualify for those contracts, a service-disabled veteran had to own and control the company and manage its day-to-day operations.[2] Officium Global did not meet those requirements.

Officium Global will pay $1.8+ million to settle the allegations.[3]

How Did Loyal Source Government Services Allegedly Violate the Contract Disputes Act?

In a related action, Loyal Source Government Services purportedly violated the Contract Disputes Act “by causing breaches of the seven contracts awarded to Officium Global, related to Officium Global’s representations that it met all requirements to be a service-disabled veteran-owned small business, when it did not.” Loyal Source Government Services will pay $1.8+ million as part of the settlement.[4]

Were Whistleblowers Involved in this Case?

Whistleblowers often bring successful cases based on fraud in government contracting, also known as procurement fraud.

This lawsuit was filed by whistleblower (or relator) Jeremy Lavin. Under the qui tam (or whistleblower provisions) of the False Claims Act, private parties may file lawsuits on behalf of the government and can receive a portion of up to 30% of any monetary recovery. In this case, Lavin will receive over $680,000.00 from the settlement.

Comments on the Case

U.S. Attorney Gregory W. Kehoe commented: “Protecting the integrity of government contracts is a primary priority for our office. This civil settlement demonstrates our commitment to protecting service-disabled veteran and small-business grant programs.”[5]

Constantine Cannon attorney Marlene Koury shared: “The government relies on companies to truthfully represent their qualifications for contracts set aside for service-disabled veteran-owned businesses. When companies misrepresent their eligibility, they deprive legitimate veteran-owned businesses of opportunities and undermine the purpose of the program.”

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Our firm has extensive experience representing whistleblowers. If you believe you have a case, please contact us to speak with an experienced member of the Constantine Cannon whistleblower team for a free, confidential consultation.

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[1] See https://www.justice.gov/usao-mdfl/pr/government-contractors-agree-pay-over-36-million-settle-false-claims-act-and-contract

[2] Id.

[3] Id.

[4] Id.

[5] Id.

Tagged in: False Claims Act, qui tam,