False Claim Allegations: Officium Global, Loyal Source Government Services reach multimillion-dollar agreement with U.S.

Officium Global LLC and Loyal Source Government Services LLC have agreed to pay $3.6 million to resolve allegations that they violated the False Claims Act and Contract Disputes Act, respectively.

According to the settlement agreement, Officium Global allegedly submitted false or fraudulent claims for payment related to service-disabled veteran-owned small business set-aside contracts that were awarded between May 2017 and June 2018.

During that period, Officium Global was allegedly awarded seven set-aside contracts to which it was not entitled because its management and daily business operations were not controlled by a service-disabled veteran.

As stated in the settlement agreement, Officium Global submitted, or caused to be submitted, false certifications and statements representing that it met all requirements to be a service-disabled veteran-owned small business when it did not. Officium Global will pay over $1.8 million as part of the settlement.

Relatedly, Loyal Source Government Services allegedly violated the Contract Disputes Act by causing breaches of the seven contracts awarded to Officium Global, related to Officium Global’s representations that it met all requirements to be a service-disabled veteran-owned small business, when it did not. Loyal Source Government Services will pay over $1.8 million as part of the settlement.

“Protecting the integrity of government contracts is a primary priority for our office,” said U.S. attorney Gregory W. Kehoe. “This civil settlement demonstrates our commitment to protecting service-disabled veteran and small-business grant programmes.”

The settlement concluded a lawsuit originally filed in the U.S. District Court for the Middle District of Florida by relator Jeremy Lavin.

Mr Lavin sued under the qui tam, or whistleblower, provisions of the False Claims Act, permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery.

The act also allows the U.S. government to intervene and prosecute the action. The relator will receive over $680,000.00 of the proceeds from the settlement with the Defendants.

“The favourable settlement in this case is the product of enhanced efforts by President Trump’s Small Business Administration, working with the Department of Justice and other federal law enforcement partners, to uncover misconduct in SBA’s contracting assistance programs and hold wrongdoers to account,” said SBA general counsel Wendell Davis.

“This case demonstrates the VA OIG’s commitment to safeguarding programs designed to support legitimate service-disabled veteran-owned small businesses, said acting special agent in charge Greg Wentz with the Department of Veterans Affairs Office of Inspector General Southeast Field Office. “Together with our law enforcement partners, we will continue to pursue those who exploit VA programs and services.”