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Fraud Subcontractors

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Parker Poe Adams & Bernstein LLP

Small Business Administration Fraud Audit Affects Prime Contractors and Subcontractors of 8(a) Program

Small Business Administration head Kelly Loeffler has announced a “full-scale” audit of its 8(a) program for socially and economically disadvantaged small business owners, directing the agency’s Office of Government...more

Troutman Pepper Locke

Will DBE Fraud Continue to Be Prosecuted? The Impact of the Kousisis Decision in the Shifting Affirmative Action Landscape

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On May 22, the Supreme Court in Kousisis, et al., v. United States, affirmed the convictions of a painting subcontractor and its owner (defendants) under the federal wire fraud statute for conspiring to defraud the Department...more

Perkins Coie

US Supreme Court Adopts Expansive “Fraudulent Inducement” Theory of Wire and Mail Fraud

Perkins Coie on

As we previously reported, last month, the Supreme Court of the United States in Kousisis v. United States roundly endorsed the expansive “fraudulent inducement” theory of federal wire and mail fraud. Resolving a circuit...more

Bradley Arant Boult Cummings LLP

Government Contracts White-Collar Alert: Supreme Court Clarifies Wire Fraud Statute

The U.S. Supreme Court recently delivered a significant ruling in Stamatios Kousisis, et al. v. United States, affirming that a defendant can be convicted of federal fraud for inducing a transaction through materially false...more

Foley Hoag LLP - White Collar Law &...

Federal Fraud: No Harm, No Foul? Supreme Court Says “Not So”

On May 22, 2025, the Supreme Court issued a unanimous decision broadening applicability of the federal wire fraud statute. In Kousisis v. United States, the Court held that a defendant may be convicted of wire fraud for...more

WilmerHale

Supreme Court Rejects Economic-Loss Requirement for Wire Fraud but Underscores Materiality as a Limiting Element of Federal Fraud...

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On May 22, 2025, the Supreme Court unanimously declined to limit federal wire fraud to cases involving economic loss to the victim, upholding convictions of two government contractors who obtained contracts from a state...more

Pietragallo Gordon Alfano Bosick & Raspanti,...

No Harm, Still Foul: Supreme Court Affirms Expansive Reach of Wire Fraud Statute in Kousisis

In a recent decision upholding the expansive reach of the federal wire fraud statute (18 U.S.C. §1343), the U.S. Supreme Court ruled in Kousisis v. United States, No. 23-909 (May 22, 2025) that a defendant can be convicted of...more

Baker Donelson

Supreme Court Endorses "Fraudulent Inducement Theory": How the Kousisis v. United States Ruling Widens the Road for Fraud...

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If a defendant uses material misrepresentations to induce a party to enter a contract, but does not economically harm the induced party, has the defendant committed fraud? The Supreme Court has decided: Yes. On May 22, 2025,...more

Morgan Lewis

Supreme Court Broadens Wire Fraud Liability to Include Fraudulent Inducement Without Economic Loss

Morgan Lewis on

The US Supreme Court’s ruling on May 22, 2025 expands the scope of federal wire fraud to include convictions based on fraudulent inducement even without economic harm. This development raises the stakes for entities involved...more

Oberheiden P.C.

10 Critical Facts for Defense Logistics Agency (DLA) Contractors Facing Suspension or Debarment

Oberheiden P.C. on

The Defense Logistics Agency (DLA), is cracking down on procurement fraud and contract fraud. It has recently issued multiple referrals for suspension or debarment, and it is targeting not only prime vendors, but...more

Cohen Seglias Pallas Greenhall & Furman PC

White Lie Or Wire Fraud? Why Contractors Must Carefully Follow Contract Requirements

Can deception used to secure a construction project bid constitute mail or wire fraud, even if there was no intent to financially harm the bid solicitor or even lower the project’s cost? That’s one of the questions the United...more

Oberheiden P.C.

Serving as a Procurement Fraud Whistleblower: What Evidence Do You Need?

Oberheiden P.C. on

Whistleblowers play a key role in the federal government’s ongoing fight against procurement fraud. Government procurement fraud is extraordinarily costly; and, despite the government’s vast resources, detecting procurement...more

Oberheiden P.C.

Government Procurement Fraud: Common Types and Indicators

Oberheiden P.C. on

Government procurement fraud is pervasive. The vast majority of government procurement fraud goes undetected, and federal agencies rely heavily on whistleblowers to help them determine when scrutiny is warranted. Blowing the...more

Cozen O'Connor

Sports Betting Companies Pay $6.5 Million for Allegedly Conspiring to Violate D.C. Laws

Cozen O'Connor on

District of Columbia AG Brian Schwalb has settled with Intralot, Inc. and Veterans Services Corporation (VSC) to resolve an investigation into allegations that the companies deceived city officials in violation of the...more

Bradley Arant Boult Cummings LLP

DOJ Reports Substantial Procurement Fraud Recoveries in FY 2024

The Department of Justice (DOJ) recently announced that it obtained more than $2.9 billion in False Claims Act (FCA) settlements and judgments in the fiscal year ending Sept. 30, 2024. DOJ reports that matters that...more

Warner Norcross + Judd

How the MBTFA Protects Subcontractors, Suppliers and Owners

Warner Norcross + Judd on

The Michigan Builders Trust Fund Act (MBTFA), MCL 570.151 et seq. was signed into law in the early years of the Great Depression to protect people from fraud and misappropriation of funds in the construction industry. During...more

Oberheiden P.C.

A Guide for Government Contractor Whistleblowers

Oberheiden P.C. on

Federal employees as well as people who work for companies that contract with the government have access to important information about the goods and services that the contractor is providing. In some cases, that information...more

Mayer Brown

Legal Developments in Construction Law: February 2024

Mayer Brown on

1. "Smash & grab" claim + true value claim = one adjudication dispute, or two? A subcontractor resisting enforcement of an adjudication award claimed that the adjudicator had exceeded their jurisdiction....more

StoneTurn

Insider Risk: Construction Spotlight - StoneTurn

StoneTurn on

Insider Risks often generate images of cyber breaches or government leaks. But experience shows us Insiders can impact any industry, and often fly under the radar until something occurs. Whether you’re an owner, a developer,...more

Holland & Knight LLP

Amtrak Inspector General Cites Increased Fraud Risk as Government Invests in Infrastructure

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Though the golden days of passenger rail service are long since behind us, the federal government continues to operate Amtrak, a sprawling federal agency with more than 19,000 employees in 46 states that provides rail service...more

Frantz Ward LLP

Cleveland City Council passes the Wage Theft and Payroll Fraud Prevention Ordinance

Frantz Ward LLP on

Reposted from the Labor & Employment Law Navigator Blog - On Monday December 5, 2022, Cleveland City Council passed the Wage Theft and Payroll Fraud Prevention Ordinance (the “Ordinance”) – which prohibits the City of...more

Venable LLP

Tomato, Tomahto...Let’s Call the Whole Thing Off: Virginia District Court Decision Shows Perils of Federal Contractor Teaming...

Venable LLP on

Teaming agreements are a common, beneficial, and sometimes necessary way for industry to come together and meet the federal government’s needs. But the devil is in the details. A recent decision from the U.S. District Court...more

Jenner & Block

Government Contracts Legal Round-Up | 2022 Issue 18

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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

Jenner & Block

Government Contracts Legal Round-Up | 2022 Issue 15

Jenner & Block on

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

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