SBA Rule Will Boost Prosecution Of Small-Biz Contract Fraud

Law360, New York (July 2, 2013, 9:25 PM EDT) -- A Small Business Administration rule finalized Friday says that fraudulently obtained small business contracts provide no value to the federal government, a change that experts say will increase the number of enforcement actions by clearing the government to seek repayment for the entire contract.

The rule implements part of the Small Business Jobs Act of 2010, which says that when a company wins a contract by willfully misrepresenting its small business status, the government's presumed loss is the value of the contract.

While the law already...
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