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Cooking Up Trouble: Record $48.5 Million Settlement in Foodservice Equipment Government Contracting Fraud Case
Thursday, April 21, 2022
Improperly obtaining contracts that are meant for service-disabled, veteran-owned businesses—and concealing it—is not a recipe for success in government contracting. The United States Department of Justice settled a case against a foodservice and restaurant equipment supplier. Under the terms of the settlement, the contractor paid $48.5 million, the “largest-ever False Claims Act recovery based on allegations of small business fraud,” of which $21.6 million is restitution. Additionally, a former executive who managed the foodservice company’s government contracts, was fined $100,000 as an individual civil penalty. The whistleblower was a company called Fox Unlimited Enterprises, LLP. For reporting government contracting fraud, the relator received 22.5% of the settlement, just over $10.9 million.Continue reading