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October 5, 2026


Federal grants come with rules as strict as any contract. The Uniform Guidance governs how you spend, document, and report, and misusing grant funds or faking the paperwork is grant fraud with the same False Claims Act teeth.
Government fraud enforcement increasingly reaches the people, not just the company. Owners and executives can face personal civil liability and criminal charges, and a corporate settlement rarely buys an individual a pass.
Almost every big False Claims Act recovery starts with a whistleblower. Understanding how qui tam suits, the seal, intervention, and relator shares actually work explains why your own employees are your biggest enforcement risk, and your best compliance asset.
Taking a competitor's proprietary data, or letting a new hire bring it to you, can be a federal crime under the Economic Espionage Act. In the tight world of government contracting, the line between competitive intelligence and theft matters.
As a prime, you are responsible for the whole job, including what your subcontractors do. Flow-down clauses push required terms down the chain, and the prime often answers to the government for a sub's compliance failure.
Progress payments and interim billing let contractors get paid before final delivery, but they rest entirely on honest reporting of costs and completion. Overstate what you have done, and a cash-flow tool becomes a False Claims Act case.
On federal and federally funded construction, the Davis-Bacon Act sets the prevailing wages and fringe benefits you must pay, and requires certified payrolls. Underpay or falsify the records, and you face withheld funds, debarment, and False Claims Act exposure.
A defense contractor paid $4.6 million after allegedly reporting a near-perfect cybersecurity score while its real score was deeply negative. The gap between what it certified and what it had is the whole case.