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Cautionary Tale: Contractor Settles for $2.6M Over Alleged Falsely Obtained Small Business Contracts

By Edwin O. Childs, Jack White, Abram J. Pafford, Todd R. Steggerda, Brett Barnett, Michael J. Podberesky, Maura Naehr & Jason M. Vespoli on January 16, 2025
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On Jan. 7, 2025, the Department of Justice announced that R&K Enterprises agreed to pay over $2.6 million to resolve allegations under the False Claims Act, 31 U.S.C. §§ 3729-3733, among other causes. The settlement was predicated on allegations that the company represented it was a small business eligible for certain small business set-aside contracts when it did not meet the program rules to qualify. This settlement underscores the importance of contractors making accurate small business certifications when bidding on set-aside contracts.

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Photo of Edwin O. Childs Edwin O. Childs

As a leader of the firm’s Defense, National Security and Government Contracting industry team, Ned Childs is a government contract and investigations and enforcement attorney who represents companies across a wide range of sectors, including the defense, services, technology, and aerospace industries.

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Photo of Jack White Jack White

Jack is a partner in the firm’s nationally ranked Government Investigations and White Collar Litigation practice, focusing his practice on civil litigation, regulatory enforcement, and congressional investigations for clients in the defense, technology, federal contracting, and other business sectors.

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Photo of Abram J. Pafford Abram J. Pafford

Abe is an experienced litigator who represents government contractors across the full spectrum of government contract matters, including litigation, appeals, administrative proceedings and investigations. As a member of the firm’s nationally recognized Government Investigations and White Collar department, Abe prosecutes claims arising under…

Abe is an experienced litigator who represents government contractors across the full spectrum of government contract matters, including litigation, appeals, administrative proceedings and investigations. As a member of the firm’s nationally recognized Government Investigations and White Collar department, Abe prosecutes claims arising under the Contract Disputes Act, defends against False Claims Act lawsuits initiated by the Department of Justice, and represents protestors and intervenors in pre-award and post-award bid protests before the United States Court of Federal Claims and the GAO.

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Photo of Todd R. Steggerda Todd R. Steggerda

Todd Steggerda serves as McGuireWoods’ Deputy Managing Partner for Litigation, overseeing and managing the firm’s nine litigation departments and roughly 500 litigators in the U.S. and the UK. He is the former chair of the firm’s Government Investigations and White Collar Litigation Department…

Todd Steggerda serves as McGuireWoods’ Deputy Managing Partner for Litigation, overseeing and managing the firm’s nine litigation departments and roughly 500 litigators in the U.S. and the UK. He is the former chair of the firm’s Government Investigations and White Collar Litigation Department, which Law360 recently selected for its prestigious “Practice Group of the Year” award for its notable work in 2019. In a dynamic practice spanning 20 years in Washington, Todd has resolved a diverse range of high-stakes government investigations, regulatory enforcement, and litigation matters, including dozens of matters investigated by the civil and criminal divisions of the Department of Justice, the Department of Defense, and numerous other federal and state agencies and investigative bodies.

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Photo of Brett Barnett Brett Barnett

Brett Barnett’s practice is focused on complex commercial litigation with an emphasis on healthcare litigation. He has represented and advised healthcare and other clients across the country in a variety of regulatory, governance, market, and financial matters.

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Photo of Michael J. Podberesky Michael J. Podberesky

Michael Podberesky, a former federal prosecutor in the U.S. Department of Justice’s Civil Fraud Section, is a partner in the firm’s nationally recognized Government Investigations and White Collar Litigation Department and co-chair of the False Claims Act Investigations, Litigation and Enforcement team. Employing…

Michael Podberesky, a former federal prosecutor in the U.S. Department of Justice’s Civil Fraud Section, is a partner in the firm’s nationally recognized Government Investigations and White Collar Litigation Department and co-chair of the False Claims Act Investigations, Litigation and Enforcement team. Employing his extensive experience with False Claims Act cases in the healthcare and defense sectors, Michael represents clients confronting high-stakes government investigations and litigation arising from allegations of healthcare and procurement fraud and also counsels clients regarding compliance issues.

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Photo of Maura Naehr Maura Naehr

Maura focuses her practice on government contracts and government investigation matters.

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Photo of Jason M. Vespoli Jason M. Vespoli

Jason focuses his practice on federal and state procurement, government technology, bid protests and government contract disputes, and regulatory compliance. He utilizes experience in state government, government technology, and complex procurement to solve problems in innovative and efficient ways.

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  • Posted in:
    Administrative, Corporate & Commercial
  • Blog:
    The FCA Insider
  • Organization:
    McGuireWoods LLP
  • Article: View Original Source

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