ORLANDO, Fla. — Two government contractors have agreed to pay more than $3.6 million to settle allegations that they violated the False Claims Act and Contract Disputes Act, according to the U.S. Attorney’s Office for the Middle District of Florida.
Officium Global LLC and Loyal Source Government Services LLC will each pay more than $1.8 million as part of the settlement.
Federal prosecutors said Officium Global was awarded seven set-aside contracts between March 2017 and June 2018.
The contracts were intended for service-disabled veteran-owned small businesses.
According to the settlement agreement, Officium Global was not entitled to the contracts because its management and daily operations were not controlled by a service-disabled veteran.
Prosecutors said Officium Global submitted, or caused to be submitted, false certifications and statements claiming it met the requirements to be considered a service-disabled veteran-owned small business.
“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.”
Federal prosecutors said Loyal Source Government Services was also connected to the case.
According to the settlement agreement, Loyal Source violated the Contract Disputes Act by causing breaches of the seven contracts awarded to Officium Global.
“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.
The lawsuit was originally filed by whistleblower Jeremy Lavin under the False Claims Act, which allows private citizens to sue on behalf of the United States over alleged false claims.
Lavin will receive more than $680,000 from the settlement with the defendants.
The claims resolved by the settlement are allegations, and there has been no determination of liability.
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