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US DOJ Describes Approach and Target Areas for the Civil Cyber-Fraud Initiative Directed at Federal Contractors and Grantees

By Marcia Madsen & David A. Simon on October 14, 2021
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In remarks on October 13, 2021, at the Cybersecurity and Infrastructure Security Agency (“CISA”) National Cybersecurity Summit, Acting Assistant Attorney General Brian Boynton fleshed out the Department of Justice’s (“DOJ”) thinking regarding the nature of the cybersecurity failures that are likely targets for potential False Claims Act (“FCA”)1 enforcement under the Civil Cyber-Fraud Initiative (“Initiative”). He was clear that DOJ expects whistleblowers to “play a significant role” in pursuing actions for “knowing” failures and misconduct by contractors and grantees.

DOJ expects this Initiative to focus on federal agencies as “victims” of knowing misrepresentations by contractors or grantees about their cybersecurity practices or failure to abide by requirements in their agreements, grants or licenses.

The remarks identified what are viewed as “at least three common cybersecurity failures” as candidates for FCA enforcement.

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Photo of Marcia Madsen Marcia Madsen

Marcia focuses on Government Contracts and Litigation, advising clients on contract formation, teaming and strategic alliances, contract and subcontract negotiations, performance disputes, audits, terminations, cost accounting and allowability, technical data rights and trade secrets, and fraud/false claims investigations • litigates bid protests and…

Marcia focuses on Government Contracts and Litigation, advising clients on contract formation, teaming and strategic alliances, contract and subcontract negotiations, performance disputes, audits, terminations, cost accounting and allowability, technical data rights and trade secrets, and fraud/false claims investigations • litigates bid protests and claims and disputes before the GAO, the Boards of Contract Appeals, the Court of Federal Claims, and various other federal and state courts • has handled numerous ADR and mediation proceedings • areas of concentration include aerospace and defense contracts, systems integration, information systems and telecommunications contracts, health care and bio-technology, homeland security contracts, environmental remediation, and research and development contracts.

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Photo of David A. Simon David A. Simon

David Simon is a partner in Mayer Brown’s Washington DC office and a leading member of the global Cybersecurity & Data Privacy practice. He is also a member of the firm’s National Security and Government Contracts practices. A former special counsel at the…

David Simon is a partner in Mayer Brown’s Washington DC office and a leading member of the global Cybersecurity & Data Privacy practice. He is also a member of the firm’s National Security and Government Contracts practices. A former special counsel at the US Department of Defense (DoD) and chief cyber counsel to the US Cyberspace Solarium Commission, David has deep experience advising victims of ransomware attacks and state-sponsored cyber activity. Named as a Cybersecurity Trailblazer by The National Law Journal, David has also been named to Cybersecurity Docket’s “Incident Response 40,” a collection of 40 of the “best and brightest” incident response attorneys in the country. David regularly supports clients as the lead investigator and crisis manager for cross-border cyber incidents, including data breaches involving personal data, nation-state threats targeting intellectual property, state-sponsored theft of sensitive U.S. government information, and destructive attacks. David has directed and advised on dozens of complex cyber incident and data breach investigations in the last few years alone. He has counseled companies on major cyber incidents and incident preparedness across virtually every sector of the economy. David represents financial institutions, automotive manufacturers and self-driving car companies, tech companies, telecommunications companies, healthcare companies, insurance companies, defense and aerospace companies, private equity firms and their portfolio companies.

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  • Posted in:
    Government and Public Policy
  • Blog:
    Inside Cybersecurity & Privacy Law
  • Organization:
    Mayer Brown

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