Reining In Runaway Loss Calculations For Procurement Fraud

By David Chaiken and Tiffany Bracewell (January 22, 2020, 1:01 PM EST) -- Regardless of the political winds, the criminal prosecution of contracting fraud perpetrated against federal government agencies — and associated federal civil actions brought under the False Claims Act — remain high on the list of the U.S. Department of Justice's enforcement priorities, as prosecutors view such crimes as reaching directly into the U.S. Treasury and undermining government integrity.[1]

This article explores a recurring problem in criminal prosecutions of procurement fraud cases involving federal government set-aside contracts such as those awarded under the U.S. Small Business Administration's Section 8(a) program, designed to help small, disadvantaged (e.g., minority-owned or disabled veteran-owned) businesses compete...

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