News & Analysis as of

Contractors Fraud

Harris Beach PLLC

False Claims Act Enforcement Highlights Need for Robust Compliance Programs

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The U.S. Department of Justice (“DOJ”) announced its False Claims Act (“FCA”) enforcement statistics for FY 2023 and identified key priorities for FCA enforcement in 2024 and beyond. The DOJ continues to pursue FCA...more

Davis Wright Tremaine LLP

The Dangers of Defrauding the Government: Recent Cases Confirm Fraudulent Contractors May Face Civil and Criminal Penalties

It should go without saying that contractors should do their best to avoid lying to the government in the bidding and performance of federal contracts. The government has a host of remedies available to ensure contractors who...more

Bass, Berry & Sims PLC

Recent FCA Settlements in Government Contracts Cases

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The government continues to prioritize fraud involving government contractors, as the Department of Justice’s (DOJ) most recent annual report on civil fraud recovery shows. Although the majority of government recoveries are...more

Jenner & Block

Government Contracts Legal Round-Up | 2022 Issue 15

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Welcome to Jenner & Block’s Government Contracts Legal Round‑Up, a biweekly update on important government contracts developments. This update offers brief summaries of key developments for government contracts legal,...more

Wiley Rein LLP

No Coverage for Loss in Consequence of Social Engineering Fraud

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Applying North Carolina law, a federal district court has held that an E&O insurance policy does not provide coverage for loss arising from social engineering fraud despite the fact that the insured’s negligence also...more

Troutman Pepper

Fraud as an Exception to the Economic Loss Doctrine: Changing Trends in Colorado and Tennessee

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The Economic Loss Doctrine and its various analogues (e.g., the Independent Duty Rule and the Gist of the Action Doctrine) vary in form and application, but each is a judge-made rule serving one principle: If a party seeks...more

Snell & Wilmer

Patience on Payments Can Hurt

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A recent Utah Court of Appeals opinion, HKS Architects, Inc. v. MSM Enterprises Ltd. 2021 UT App. 70, puts contractors and designers on notice that they need to pay attention to receivables and excuses for non-payment. The...more

White & Case LLP

Construction performance bonds: "extend or pay"

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"Extend or pay" provisions are sometimes used in construction performance bonds and bank guarantees as a way of ensuring that performance security is provided for the period it is needed. Can a beneficiary be stopped from...more

Foley & Lardner LLP

CMMC 2.0 Brings Increased Flexibility — and Increased Risks — for Contractors

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Defense contractors and their subcontractors and supply chains that have been preparing for the challenge of complying with the Cybersecurity Maturity Model Certification (CMMC) recently received some welcome news from the...more

ArentFox Schiff

Investigations Newsletter: Contractor to Pay Over $4 Million to Settle FCA Violations

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CEO of Defunct Medical Testing Lab to Pay $1.1 Million to Settle FCA and AKS Case - Jae Lee, the former CEO of defunct Northwest Physicians Laboratory (NWPL), agreed to pay $1.1 million to resolve allegations that he...more

BCLP

Triple Point v PTT: UK Supreme Court also interprets a contractual cap on liability

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The UK Supreme Court recently handed down a highly anticipated judgment on the interpretation of clauses which pertain to liquidated damages and limitations on a contractor’s liability for damages. Most notably, the Supreme...more

Pillsbury Winthrop Shaw Pittman LLP

ASBCA Rejects Government’s Motion to Dismiss Despite Suspicion of Fraud

The Board’s jurisdiction attaches when the contracting officer renders a final decision or a deemed denial, and a later finding by the contracting officer that fraud is suspected will not deprive the Board of jurisdiction. ...more

Snell & Wilmer

California Construction Law Update for 2021

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In the 2020 COVID-19 year, there were not that many construction-related cases decided by the California Courts of Appeal, and none by the California Supreme Court. However, there were a number of interesting cases that raise...more

Davis Wright Tremaine LLP

Insist That Settlement Agreements Clearly State No Admission of Liability - Takeaways From Regiment Construction Corp.

In Regiment Construction Corp., CBCA 6449 (October 1, 2020), the Civilian Board of Contract Appeals (CBCA) addressed the interplay between contractor claims and Government fraud allegations. The matter arose when the...more

ArentFox Schiff

Investigations Newsletter: Contractors to Pay Over $2.8 Million to Settle Small Business Contract Fraud Allegations

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Contractors to Pay Over $2.8 Million to Settle Small Business Contract Fraud Allegations - On June 2, 2020, the Department of Justice announced that Ross Group Construction Corporation and its affiliates agreed to pay...more

Woods Rogers

Payments Due Subcontractors and Suppliers in Virginia

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Virginia’s law on the payment of subcontractors and suppliers just got some muscles. For years, Virginia had a statute that made it a crime for any contractor or subcontractor “with the intent to defraud” to retain or use...more

Jaburg Wilk

Arizona Supreme Court Holds Contractual Liability Exclusion Does Not Apply to Breach of Duty to Reasonably Construct Home

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The Holding - In Teufel v. Am. Family Mut. Ins. Co., 244 Ariz. 383, 419 P.3d 546 (2018), the Arizona Supreme Court recently held that a Contractual Liability Exclusion in homeowner policies did not apply to a claim for...more

Husch Blackwell LLP

Fraud, Forgery & Outright Theft: Strategies To Protect Project Funds

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Contractors who have employees and work with vendors are vulnerable to misappropriation of money and assets. Among industries most affected by fraud, construction ranks eighth, according to the Association of Certified ...more

Cohen Seglias Pallas Greenhall & Furman PC

Adams V. Hellings Builders, Inc.: PA Superior Court Holds That A Homebuilder Can Be Liable For Representations Made In Its...

In Pennsylvania, it is well-established that a homeowner can assert claims for fraud and violation of Pennsylvania’s consumer protection statute – the Unfair Trade Practices and Consumer Protection Law (“UTPCPL”) – against a...more

Troutman Pepper

Preventing Limitation of Liability End-Runs

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Owners who are dissatisfied with their contractors’ performance increasingly assert fraud-based claims in addition to breach of contract claims because fraud-based claims are not typically barred by contractual waivers and...more

Porter Hedges LLP

Construction Alert: "Personal Liability for Fraudulent Pay Applications"

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A false notarized payment application signed by a Contractor and submitted to an Owner may make both the Contractor and the person who signed the false application personally liable for damages suffered by the Owner. ...more

Pillsbury Winthrop Shaw Pittman LLP

Don’t Tell the Government “It Wasn’t Me”: ASBCA Holds Contract Void Ab Initio for Fraud

In the Appeal of Vertex Construction & Engineering, ASBCA No. 58988, decided last month, the Armed Services Board of Contract Appeals (“ASBCA”) exercised a “harsh” remedy in declaring Appellant’s contract void ab initio...more

PilieroMazza PLLC

An 8(a) Contracting Cautionary Tale’s Final Scene

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Many may have fond childhood memories of their parents reading cautionary tales or poems to them before going to bed, such as Hilaire Belloc’s “Rebecca: Who Slammed Doors For Fun and Perished Miserably” or Shel Silverstein’s...more

Womble Bond Dickinson

Careful Measures May Be Needed to Protect Privileged Internal Investigative Materials

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In March, the U.S. District Court of the District of Columbia ordered defense contractors Kellogg Brown and Root Inc. and Halliburton’s (“KBR”) legal department to produce internal investigative reports that KBR contended...more

Saul Ewing Arnstein & Lehr LLP

DoD Seeks Enhanced Authority to Withhold Funds from Contractors

In Brief - The U.S. Department of Defense wants to step up its efforts to fight fraud by lowering the threshold for it to withhold payments to contractors who are suspected of bribery....more

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