TWO CONTRACTORS FACE FRAUD CHARGES FOR AWARDED GOV CONTRACTS MEANT FOR WOMEN AND MINORITIES

Two contractors are facing fraud charges by the government for using companies to win government contracts set aside for women and minorities. One woman owned firm obtained the contract but had the work done by other firms. A second contractor claimed it was women owned in order to win the contracts but was really owned by men. These cases were revealed by whistleblowers who worked for the company and who sued under the False Claims Act and who will be entitled under law to receive a percentage of the monies recovered by the government. According to the U.S. Government Accountability officem from Oct 2008 to January 2010, 14 firms were identified that had fraudulently received government contracts worth more than $325 million. One of the penalties is not being paid for the work performed or returning moneys paid plus the imposition of penalties.