Government Contractors Agree to Pay Over $3.6 Million to Settle False Claims Act and Contract Disputes Act Liability

Orlando, FL - United States Attorney Gregory W. Kehoe announces that Officium Global LLC and Loyal Source Government Services LLC have agreed to pay a total of over $3.6 million 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 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 programs."

"The favorable 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."

The settlement concludes a lawsuit originally filed in the United States 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 United States to intervene and prosecute the action. The Relator will receive over $680,000.00 of the proceeds from the settlement with the Defendants.

This settlement resulted from a coordinated effort by the U.S. Attorney's Office for the Middle District of Florida, the Department of Veterans Affairs - Office of Inspector General, and the Small Business Administration. Assistant United States Attorney Jeremy R. Bloor led the investigation.

The government's action in this matter illustrates the emphasis on combating government contracting fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Veterans Affairs OIG Hotline, at 1-800-488-8244.

The case is captioned United States ex rel. Lavin v. Loyal Source Government Services, LLC et al., Case No. 6:19-cv-958-ORL-41LRH. The settlement resolves the United States' claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.