SBA Seeks Tougher Law On Small Business Contract Fraud

Law360, New York (October 27, 2011, 4:36 PM EDT) -- The Small Business Administration's inspector general asked Congress on Thursday to strengthen penalties on companies that fraudulently obtain contracts meant for small businesses, by counting the full value of a fraudulent contract as a loss to the government.

Under current law, prosecutors often struggle to show that the government is harmed by such a fraud, because agencies usually get the goods or services that they pay for, Inspector General Peggy Gustafson told the House Small Business Subcommittee on Investigations, Oversight and Regulations. But focusing only on...
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