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DOJ Crackdown on False Certification for Small Business Set-aside Award

August 13, 2018 By Alston Government Contracts Team

As discussed in prior blog posts, the DOJ over the last few years has continued to crack down on small-business contracting fraud, including “pass through” and “sham” contracting schemes. This trend has continued, and the DOJ recently cracked down on a subcontractor’s false certification for a government small-business set-aside program. On May 3, 2018, the DOJ announced that MassTech Inc. (MTI) and its CEO and CFO agreed to pay the United States $1.9 million to resolve allegations that MTI falsely certified it was a small business concern in order to obtain a Small Business Innovation Research set-aside award. This is another example of the DOJ’s continued efforts in prosecuting subcontractor fraud and serves as a reminder to large government contractors working with small businesses that they should make sure to review their small-business compliance procedures to avoid any potential issues.

Filed Under: Government Contract-Related Investigations and the False Claims Act Tagged With: False Claims Act (FCA), Small Business Administration (SBA), U.S. Department of Justice (DOJ)

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This blog is a service of Alston & Bird’s Government Contracts team and provides insights on cases, rules, trends, and latest developments in local, state, and federal government contracting. Our attorney observations include analysis of investigations, litigation, protests and issues affecting present or prospective prime contractors, subcontractors, and grant recipients across various industries.

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