Untitled @watsontheodore - Tumblr Blog

HUBZone Fraud Defense: Protecting Your Business When the SBA Challenges Your Eligibility

A HUBZone problem rarely begins with the words “fraud investigation.” It usually starts with something smaller: an SBA program examination, a certification review, a competitor protest, an employee residency question, a principal office challenge, or a request for records that seems simple enough to answer. Then the issue expands. What looked like a paperwork problem begins to threaten contract…

View On WordPress

How to Respond to a Government Investigation Without Making It Worse

A government investigation can become much more dangerous when a company reacts too quickly, destroys or alters records, allows unmanaged employee communications, or tries to “cooperate” without a legal strategy.The right response is disciplined, documented, and directed by counsel so the business can protect its legal position while dealing credibly with investigators. For companies searching…

View On WordPress

Service-Disabled Veteran-Owned Small Business (SDVOSB) Fraud: Criminal Exposure and Defense Strategies

Federal SDVOSB fraud investigations can escalate quickly from an SBA or VA eligibility issue into a parallel criminal and civil enforcement matter involving the Department of Justice, the False Claims Act, and false-statement charges. Companies and veteran owners accused of SDVOSB misconduct need a defense strategy that addresses procurement rules, investigator tactics, suspension and debarment…

View On WordPress

False Claims Act Penalties for Government Contractors in 2026

A False Claims Act investigation is not only a liability event. For a government contractor, it is a financial stress test. Once DOJ starts measuring exposure, the conversation often moves quickly from “what happened” to “how many claims were submitted, what was paid, what can be trebled, and how many statutory penalties can be stacked on top.” That is why False Claims Act penalties for…

View On WordPress

What Happens When a Government Contractor Gets a CID or Subpoena? First 24 Hours

A Civil Investigative Demand (CID) or subpoena served on a government contractor is not a routine records request. It is often the first visible sign that DOJ, DCIS, SBA OIG, or Army CID believes there may be fraud, false claims, false certifications, small business program abuse, defective pricing, billing misconduct, or another federal enforcement issue tied to your contracts. The first mistake…

View On WordPress

Federal Healthcare Fraud Defense: What Physicians and Healthcare Companies Need to Know About DOJ's 2026 Enforcement Priorities

The government is not scaling back its healthcare fraud enforcement in 2026. It is accelerating — with better technology, more funding, and a new organizational structure built specifically to pursue you. In June 2025, DOJ announced the largest National Health Care Fraud Takedown in its history: 324 defendants charged, including 96 licensed medical professionals, for alleged fraud schemes…

View On WordPress

SBA 8(a) Program and HUBZone Program Fraud: What Happens When the Government Accuses You of Misrepresenting Your Status?

Theodore Watson, Esq. You believe that you built your business the right way. You got certified. You competed for contracts following the rules. You performed and even received excellent past performance. Then, one day, an alarming letter arrives from the Department of Justice. Or the SBA Office of Inspector General calls. Or a Civil Investigative Demand lands on your desk demanding years of…

View On WordPress

Civil Investigative Demand (CID) - What CEOs Must Know Right Away

A federal Civil Investigative Demand (CID) is not “just paperwork.” It is the government telling you, as CEO, that your company is now a source of evidence in a potential fraud or CID False Claims Act case—often before you even know what problem they think you have. The real work is not just “responding to the CID,” but diagnosing what business, compliance, or cultural problem triggered it—and…

View On WordPress

HealthCare Fraud Defense After California Hospice Takedown: What the DOJ Arrests Really Mean

More Than $50 Million in Intended HealthCare Fraud Losses at Risk Federal prosecutors in Los Angeles have framed “Operation Never Say Die” as a sweeping healthcare fraud takedown. The underlying DOJ release, however, remains an accusatory document—not proof of guilt—and it leaves substantial room for the defense in each case. What DOJ Says Happened in “Operation Never Say Die” The U.S. Attorney’s…

View On WordPress

SBA SIZE Protest: Size Appeal of Stripes Global, Inc., Non Manufacturer Rule

This appeal involved a protestor’s challenge to the awardee’s small business status under a procurement for manufactured items, where the issues centered on the nonmanufacturer rule, the ostensible subcontractor rule, and the Limitations on Subcontracting. The protestor argued that the awardee did not qualify as a small business nonmanufacturer and was improperly reliant on another firm’s state…

View On WordPress

How the DOJ Decides Whether to Intervene in a Qui Tam Case Against Your Company

When a whistleblower files a sealed case against your company, the most important early question is often not whether the allegations are fair. It is whether the Department of Justice will decide to intervene and take the case over under the False Claims Act. For CEOs, founders, boards, and private equity-backed leadership teams, the decision on intervention can change the trajectory of the…

View On WordPress

SBA OHA Clarifies HUBZone “Employee” Rules in CS Government Solutions Appeal

In a recent HUBZone appeal, the SBA Office of Hearings and Appeals (OHA) affirmed SBA’s decision that CS Government Solutions, LLC was not an eligible HUBZone small business for DHS’s FirstSource III procurement. For HUBZone contractors, the decision is a reminder that HUBZone eligibility can be tested aggressively in both SBA program examinations and HUBZone status protests. For companies…

View On WordPress

Government Contract Fraud Lawyer: Civil False Claims Act and Criminal Penalties – What CEOs Must Know

When federal prosecutors start using the phrase government contract fraud in connection with your company, they are not questioning a single invoice. They are questioning your entire system for bidding, performing, and certifying work in the federal marketplace—and, by extension, your judgment as a leader. A serious CEO does not need a primer on what a subpoena is. You need to understand what the…

View On WordPress

Businesses Facing Federal Indictment for Government Contract Fraud What You Need to Know in 2026

You have built years of past performance evaluations. Relationships with contracting officers. Payroll for dozens — maybe hundreds — of employees who depend on your company. Subcontractors who trust you. A reputation earned one contract at a time. And now a federal indictment for government contract fraud threatens all of it. If you are a government contractor facing criminal charges, you already…

View On WordPress

What Happens After a Federal Indictment? A Step-by-Step Guide for Business Owners

A federal indictment is a formal accusation that you have committed a federal crime. It is a serious matter that can have a devastating impact on your business and your personal life. If you have been indicted, you need to understand what happens next and what you can do to protect yourself. This information will provide you with a general step-by-step guide to the federal indictment process. The…

View On WordPress

Federal False Claims Act 31 USC 3729 - 3733 FAQ for CEOs and Companies

Suppose your company is facing a federal False Claims Act investigation. In that case, a sealed whistleblower (qui tam) lawsuit, or a Civil Investigative Demand (CID) from the U.S. Department of Justice, the pressure you are feeling is real — and justified. Federal FCA cases carry the power to cripple businesses, destroy executive careers, and trigger parallel criminal prosecutions. This Federal…

View On WordPress

Defense Contractor Fraud Charges Are Rising: What a Recent Government Contract Fraud Case Reveals About Federal Prosecutions

Federal prosecutors continue to aggressively target defense contractors, suppliers, and small businesses involved in government contracting. From bid-rigging to false certifications, the DOJ’s Procurement Collusion Strike Force, the FBI, and agency Inspectors General are scrutinizing every stage of the bidding and award process. A recent DOJ case involving the owner of a fuel-truck supply company…

View On WordPress

Trending Blogs

Recently Viewed Blogs

Untitled