Justin D. Whatcott Acting United States Attorney for the District of Idaho | Department of Justice
Sanford Federal, Inc. and its owner, Joseph Mandour, have agreed to pay $3.1 million to resolve allegations of violating the False Claims Act in connection with 49 government contracts across the country. The settlement addresses claims that Sanford and Mandour misrepresented employee identities, used fraudulent credentials in contract bids, and misrepresented the company’s size to qualify for contracts set aside for small businesses under Small Business Administration rules.
The United States further alleged that Sanford and Mandour improperly obtained a service-disabled veteran owned small business set-aside contract and violated subcontracting limitations meant to ensure such contracts are performed by qualifying businesses.
Acting U.S. Attorney Justin Whatcott stated: “Government contractors are important partners that help us achieve our various government missions. But misrepresentations in bids undermine the integrity of the bid process and deprive legitimate businesses of the opportunity to compete for government contracts. We will continue to protect the right of small businesses and service-disabled veteran owned businesses to obtain government contracts without being undermined by fraudulent bid practices.”
Special Agent in Charge Dimitriana Nikolov from the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office commented: “This settlement demonstrates that the VA OIG will actively investigate fraud allegations involving VA contracts that are set aside for service-disabled veterans. The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this case.”
Acting Special Agent in Charge Philip C. Mazzella from the Department of Commerce OIG added: “Lying to the government undermines the trust and integrity essential to fair competition in our country. If these lies go unchecked, our ability to effectively monitor and operate vital government programs in the United States will be significantly weakened. To hold these bad actors accountable, Commerce OIG along with our federal partners, will continue to aggressively pursue and investigate allegations of false certifications made by government contractors.”
Special Agent in Charge Christopher W. Dillard from DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office said: “When unscrupulous individuals manipulate programs intended to support small businesses, they undermine trust, weaken competition, and deny opportunities to honest business owners. DCIS stands with the U.S. Attorney’s Office and our investigative law enforcement partners to root out fraud and hold accountable those who prey on Federal programs.”
The investigation was conducted jointly by several agencies including the United States Attorney’s Office for the District of Idaho; Departments of Veterans Affairs, Commerce, Air Force, Army; Department of Defense; with additional assistance from the Small Business Administration and General Services Administration.
The settlement resolves only allegations against Sanford Federal, Inc. and Joseph Mandour; there has been no admission or determination of liability.
