Officium Global LLC and Loyal Source Government Services LLC have agreed to pay more than $3.6 million to resolve allegations that they violated the False Claims Act and Contract Disputes Act, according to a May 27 announcement by United States Attorney Gregory W. Kehoe.
The settlement agreement states that Officium Global allegedly submitted false or fraudulent claims for payment related to service-disabled veteran-owned small business set-aside contracts awarded between May 2017 and June 2018. During this period, Officium Global was awarded seven contracts it was not entitled to because its management and daily operations were not controlled by a service-disabled veteran. The company is alleged to have submitted false certifications representing compliance with all requirements for such businesses when it did not meet them. Officium Global will pay over $1.8 million as part of the settlement.
Loyal Source Government Services is alleged to have violated the Contract Disputes Act by causing breaches of the same seven contracts, which were based on Officium Global’s representations regarding eligibility as a service-disabled veteran-owned small business. Loyal Source Government Services will also pay over $1.8 million in connection with 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.” SBA General Counsel Wendell Davis said, “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.” Acting Special Agent in Charge Greg Wentz with the Department of Veterans Affairs Office of Inspector General Southeast Field Office said, “This case demonstrates the VA OIG’s commitment to safeguarding programs designed to support legitimate service-disabled veteran-owned small businesses… we will continue to pursue those who exploit VA programs and services.”
The lawsuit was originally filed under qui tam provisions by Relator Jeremy Lavin in United States District Court for the Middle District of Florida (Case No. 6:19-cv-958-ORL-41LRH). Lavin will receive more than $680,000 from the proceeds of this settlement.
The investigation involved coordination among multiple agencies including the U.S. Attorney’s Office for the Middle District of Florida, Department of Veterans Affairs – Office of Inspector General, and Small Business Administration; Assistant United States Attorney Jeremy R. Bloor led these efforts.