Department of Justice
Every GovConFeed story on Department of Justice — contract awards, policy, enforcement, and protests, newest first.
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Enforcement
Broadway Electric and Cornerstone Contracting Pay $21.3M to Settle Eight-Year SDVOSB Set-Aside Fraud Scheme
Broadway Electric, Cornerstone Contracting, and two executives will pay $21.3M to resolve False Claims Act allegations they used front companies to fraudulently capture SDVOSB and small business set-aside contracts from 2017 to 2025.
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Enforcement
Virgin Islands Contractor Sentenced in ARPA Bribery Scheme That Corrupted VIPD Commissioner and Budget Director
A Virgin Islands contractor was sentenced to 22 months for bribing VIPD Commissioner Ray Martinez and OMB Director Jenifer O'Neal with nearly $100,000 in cash, travel, and tuition to secure a $1.4 million ARPA-funded contract. Martinez received 10 years and O'Neal seven years in federal prison.
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Enforcement
DOJ's New National Fraud Enforcement Division Puts Government Contractors on Notice
Acting AG Todd Blanche's April 2026 memorandum created the NFED, consolidating DOJ's fraud enforcement under one division targeting cybersecurity attestation fraud, Buy American violations, and defective pricing.
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Enforcement
Farjess, Royal Canadian Steel, and Owner Feroz Jessani Pay $19 Million to Settle Steel Tariff Fraud Claims
DOJ announced May 20, 2026: Farjess, Royal Canadian Steel, and owner Feroz Jessani pay $19M to settle FCA claims for falsely declaring Chinese, Indonesian, and other steel as Canadian origin to evade Section 232 tariffs from 2019–2025.
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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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Policy
OMB M-26-10 Forces IT Vendors to Open Pricing Data to All Federal Agencies
OMB's March 31 memo M-26-10 requires IT vendors to disclose pricing and utilization data in machine-readable formats without cross-agency sharing restrictions, gives CIOs pre-approval authority over IT spending, and authorizes sharing disclosed data with enforcement stakeholders.
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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.
