Another one from the archives. This was a very popular webinar. This is from 2013 (I have now been practicing for 17 years!) and some of the regulations have changed slightly. But, most of the information is still relevant and the cost of non-compliance is still huge. Email me with questions.
Disadvantage Business Enterprises (DBE)
District Court Allows DBE False Claims Act Case to Proceed
Last week, I posted about how whistleblowers continue to receive large settlements related to DBE fraud. A somewhat recent case from the federal court in Maryland shows how whistleblowers are ferreting out DBE fraud on construction projects receiving any form of federal funding.
The Case
The case involves a bridge painting project in Maryland that was let by the Maryland State Highway Administration. The contract required the prime contractor to meet a 15% DBE participation goal. The prime contractor submitted a bid stating it would have 15.12% DBE participation. After it was awarded the contract, the prime contractor – as is typical – submitted additional forms certifying to the MSHA that 15.12% of its contract price would be performed by a DBE firm. The prime contractor indicated that one DBE subcontractor, Northeast Work and Safety Boats, LLC (“NWSB”), would perform the 15.12% of the work.
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Whistleblowers Continue to Receive Large Settlements in DBE Fraud Cases
It has been awhile since I last blogged about fraud involving the Department of Transportation’s disadvantaged business enterprise (DBE) program. Trust me, the problem has not gone away. If anything, prosecutions and civil claims filed under the False Claims Act alleging DBE fraud have become so frequent, I could not write a blog post about each one. The biggest winners in 2016 may have been the whistleblowers that brought the DBE fraud to the attention of the Department of Justice, who were awarded millions of dollars for doing their part to ferret out fraud. Recent whistleblower settlements include:
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House Passes Game Changing Bill for Vet Owned Construction Firms
Yesterday, the House of Representatives – by a wide margin- passed the “Fairness to Veterans for Infrastructure Investment Act of 2015.” Simply put, the Bill amends the DOT DBE regulations to include veteran owned small businesses (VOSB) within the definition of disadvantaged businesses. If this Bill is signed into law, this means that VOSB’s could…
The Summer of DBE Fraud Continues
A few weeks ago, I posted about a spat of DBE fraud cases that the Department of Justice announced in June. That post mentioned the trend among prosecutors to use the civil false claims act to combat DBE fraud. Yesterday, the United States Attorney for the Northern District of New York announced yet another DBE…
DBE Fraud Investigations Continue
Recent announcements from the Department of Transportation’s Inspector General show that authorities’ appetite for DBE fraud cases is not letting up. On July 7, 2015, the IG announced it had reached a settlement with a certified DBE firm in Georgia that submitted false claims on a DOT funded highway project. And, on June 30…
Huge PHL Project
The project, expected to take 12 years, will include a longer runway, interior renovations and a people-mover to speed passenger access between terminals.…
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FBI Raids Firm Accused of DBE Fraud
I have previously posted and spoken about the increasing prevalence of DBE fraud investigations and prosecutions. Usually those investigation are started by the Department of Transportation’s Inspector General’s Office and may lead to the unsealing of an indictment by the Department of Justice. I have also warned of the growing threat of whistleblower lawsuits related…
DOT Issues Final DBE Rule Changes
Over two years ago, the Department of Transportation published notice that it intended to make changes to the federal regulations governing the DOT’s Disadvantaged Business Enterprise program. After an extended comment period, today, October 2, 2014, the DOT issued the final DBE rule changes. These changes become effective November 3, 2014. The changes impact…
Regional Manager Indicted in DBE Fraud Case
In previous posts, I have discussed how failing to abide by the Department of Transportation’s DBE regulations can lead to the criminal indictment of construction company executives. Now, a case out of the Southern District of New York – a hotbed of DBE fraud prosecutions – should have all employees of a firms that fail…