Government contractors that falsify eligibility in Disadvantaged Business Enterprises (“DBE”) programs may violated the False Claims Act (“FCA”).  The DBE programs are most common under the Federal Uniform DBE Program for Federal Highway Administration, Federal Aviation Administration and Federal Transit Administration.  “The Disadvantaged Business Enterprises program helps businesses owned by minorities and women work on federal transportation projects,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice.  “Those who falsely claim credits under the program to obtain federal funds victimize both the businesses that the program is designed to assist and the American taxpayer.”  “DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said Michelle McVicker, regional Special Agent-in-Charge of the DOT’s Office of Inspector General.

Under the various DBE programs, it is a mandatory for state and local governments to obtain federal transportation funds to require a certain percentage of contractors be female and of certain minority owned and controlled businesses.  State and local governments are required to have overall annual goals for DBE participation on federally funded contracts and a system of mandatory or voluntary subcontracting goals on individual federally funded contracts.  DBE fraud may occur when contractors or subcontractors falsify eligibility for the program or falsify the DBE conduct or activity claimed to meet the contract requirements, and such conduct may violate the FCA.

If you know of fraud being perpetrated against the United States or one of the state governments and you would like to learn more about or would like to bring a qui tam whistleblower lawsuit against the wrongdoer, the whistleblower attorneys at Keller Grover LLP may be able to help you. The whistleblower lawyers at Keller Grover LLP understand qui tam litigation, including the whistleblower protection provisions, and strive to achieve the best possible results for their clients.