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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. His…

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. His practice, spanning more than a decade in Washington, encompasses a broad array of legal services, including government contract investigations, disclosures, and regulatory enforcement actions; bid protests and government contract disputes; government contract counseling; export licensing and enforcement; prime contractor-subcontractor disputes; corporate ownership and acquisition issues; and election law investigations and enforcement matters.

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Photo of Jack White Jack White

Jack is an accomplished trial lawyer and legal strategist who guides clients through complex challenges, including high-profile and sensitive litigation and government investigations. He focuses his practice on civil litigation, regulatory enforcement, and congressional investigations for clients in the defense, technology, federal contracting…

Jack is an accomplished trial lawyer and legal strategist who guides clients through complex challenges, including high-profile and sensitive litigation and government investigations. He focuses his practice on civil litigation, regulatory enforcement, and congressional investigations for clients in the defense, technology, federal contracting, higher and K-12 education, and other business sectors.

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Photo of Abram J. Pafford Abram J. Pafford

Abe focuses his practice on protecting the rights and interests of companies and individuals who face disputes or conflicts with the federal government in its role as purchaser, prosecutor, and chief regulator. For more than twenty years, Abe has represented government contractors, participants…

Abe focuses his practice on protecting the rights and interests of companies and individuals who face disputes or conflicts with the federal government in its role as purchaser, prosecutor, and chief regulator. For more than twenty years, Abe has represented government contractors, participants in regulated industries, and companies and individuals targeted for federal investigation or prosecution, consistently achieving successful results for clients confronting difficult odds.

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Photo of Todd R. Steggerda Todd R. Steggerda

Todd Steggerda serves as McGuireWoods’ Deputy Managing Partner for Strategic Development, following service as the deputy managing partner for litigation where he oversaw and managed the firm’s litigation departments and roughly 500 litigators in the U.S. and the UK. He is the former…

Todd Steggerda serves as McGuireWoods’ Deputy Managing Partner for Strategic Development, following service as the deputy managing partner for litigation where he oversaw and managed the firm’s 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. In a dynamic practice spanning nearly 25 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 is the co-leader of McGuireWoods’ False Claims Act Investigations & Litigation Practice Group. He focuses his practice on representing clients in high-stakes False Claims Act matters, healthcare fraud and abuse investigations, and complex commercial litigation across the country. Brett routinely leads internal…

Brett is the co-leader of McGuireWoods’ False Claims Act Investigations & Litigation Practice Group. He focuses his practice on representing clients in high-stakes False Claims Act matters, healthcare fraud and abuse investigations, and complex commercial litigation across the country. Brett routinely leads internal and government-facing investigations involving the U.S. Department of Justice and other federal and state agencies, and defends clients in civil FCA litigation, often involving parallel proceedings and regulatory scrutiny.

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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-leader of the firm’s Healthcare Litigation and Enforcement Practice Group. Employing his…

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-leader of the firm’s Healthcare Litigation and Enforcement Practice Group. 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 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:
    Government Contracts
  • Blog:
    The FCA Insider
  • Organization:
    McGuireWoods LLP
  • Article: View Original Source

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