DBE Fraud: $5 Million Settlement In Pass-Through Case

A large business has agreed to pay nearly $5 million to resolve False Claims Act allegations that it participated in a “pass-through” scheme designed to take advantage of the Department of Transportation’s Disadvantaged Business Entity program.

According to a Department of Justice press release, HD Supply Waterworks conspired with subcontractors to list a now-defunct Native American-owned company as a subcontractor, when in fact the subcontractor’s work was passed through to Waterworks.

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DOT DBE Fraud: Construction Company Admits False Statements In “Pass-Through” Case

A Connecticut construction company has agreed to pay more than $2.4 million to resolve fraud claims related to an alleged DOT DBE “pass through” scheme.

According to a DOJ press release, as part of the resolution, the construction company has admitted that it made false statements to the government that a DBE performed more than $3 million in subcontracted work, when in fact, that work was performed by a non-DBE.

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