Department of Justice
Every GovConFeed story on Department of Justice — contract awards, policy, enforcement, and protests, newest first.
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Enforcement
Matrix Medical and HealthFair Pay $56.5 Million to Resolve Medicare Advantage Risk-Adjustment Fraud Claims
DOJ announced June 3, 2026: Matrix Medical, HealthFair, and founder Ekbatani pay $56.5M to settle FCA claims that in-home assessments generated false diagnosis codes to inflate Medicare Advantage risk-adjustment payments from 2014–2019.
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Enforcement
Two Government Contractors Pay Over $3.6 Million to Settle False Claims Act Allegations Over SDVOSB Set-Aside Fraud
Officium Global LLC and Loyal Source Government Services LLC will each pay more than $1.8 million to resolve False Claims Act and Contract Disputes Act allegations tied to seven VA SDVOSB set-aside contracts awarded between May 2017 and June 2018.
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Enforcement
Las Vegas Man Pleads Guilty to Rigging Bids on Nellis and Moody Air Force Projects
Scott G. Srodes, 65, of Las Vegas pleaded guilty to conspiring to rig bids and defraud the U.S. on more than $1.8M in Air Force facility projects at Nellis and Moody AFB. It is the second plea in an ongoing PCSF bid-rigging investigation into military-facility procurement.
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Enforcement
Canadian Steel Firms Farjess and Royal Canadian Steel to Pay $19M FCA Settlement for Mislabeling Foreign Steel to Evade Duties
Farjess Inc., Royal Canadian Steel Inc. and owner Feroz Jessani will pay $19 million to resolve False Claims Act allegations that they misrepresented the country of origin of European and Asian flat-rolled steel to evade antidumping, countervailing and Section 232 duties owed to U.S. Customs and Border Protection.
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Enforcement
Perfectus Aluminum to Pay Record $549.5M in Largest-Ever Trade-Related False Claims Act Settlement
DOJ secured a record $549.5M False Claims Act settlement with importer Perfectus Aluminum over evaded Chinese aluminum AD/CVD duties. The largest-ever trade-related FCA deal signals aggressive customs enforcement and qui tam risk for contractors importing components.
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Enforcement
Two Florida Defense Contractors Arrested in $1.25M Bribery Scheme at Army's Hawaii Innovation Campus
The Justice Department arrested two Florida defense contractors — Leonard Pick and Brian Kent — alleging they bribed a U.S. Army employee with $1.25 million over roughly 18 months to steer technology innovation contracts at the Army Pacific Command's Hawaii-Pacific Innovation Campus, while inflating contract costs by $680,000 to fund the payments.
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Enforcement
SBA Expands Administrative False Claims Act Reach Sixfold — Now Covers Claims Up to $1M
SBA regulations effective May 4, 2026 raise the administrative False Claims Act ceiling from $150,000 to $1 million, expressly cover reverse false claims, and extend COVID-era EIDL and PPP fraud exposure through 2030 to 2032 — significantly expanding the agency's enforcement toolkit.
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Enforcement
Swiss Automation Pays $421K to Resolve DFARS Cybersecurity Compliance False Claims Act Allegations
Swiss Automation Inc. agreed to pay $421,000 to settle Department of Justice False Claims Act allegations that it falsely certified DFARS 252.204-7012 cybersecurity compliance while failing to implement required NIST SP 800-171 security controls on systems handling controlled unclassified information under DoD contracts.
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Enforcement
W International Pays $10.5M to Settle False Claims Act Charges Over Inflated Billings on DoD Contracts
W International Inc. agreed to pay $10.5 million to resolve Department of Justice False Claims Act allegations that it overcharged DoD on multiple contracts by billing for labor hours not actually worked and claiming unallowable costs, making it one of the larger FCA settlements in the professional services sector in 2026.
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Enforcement
DOJ's Civil Cyber Fraud Initiative: Holding Contractors Accountable for Cybersecurity Compliance
The DOJ's Civil Cyber Fraud Initiative uses the False Claims Act to hold contractors accountable for falsely certifying DFARS/NIST 800-171 compliance. Since its October 2021 launch, it has produced settlements including a $9M Aerojet Rocketdyne agreement.
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Enforcement
SBA's Expanded Administrative False Claims Act Powers Are Now in Effect — What Defense Contractors and 8(a) Firms Need to Know
As of May 4, 2026, SBA's new rule under the Administrative False Claims Act raises the agency's administrative enforcement ceiling from $150,000 to $1 million, adds reverse false claims liability, and extends the statute of limitations, materially expanding risk for small business program participants.
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Enforcement
DOJ recovers record $6.8B in FY25 FCA settlements — Civil Cyber-Fraud Initiative settles $51.8M, 233% jump
DOJ's January 16, 2026 announcement: $6.8B total FCA recoveries in FY25 (record). Civil Cyber-Fraud Initiative drove $51,849,634 across 8 settlements — a 233% increase over FY24's $15.5M / 4 settlements. 1,297 qui tam suits, the highest ever.
