Reporting Women Owned Small Business Fraud in the SBA 8(a) Program as a Whistleblower
The most common way women-owned small business fraud happens is through the misrepresentation of a business as being owned and run by women when it’s not. This type of fraud allows the company to get set aside contracts that they would not have been eligible for without the fraud.
According to the Small Business Administration SBA 8(a), in order to be considered a women-owned small business you must meet two specific requirements about the leadership and management of the business:
- Be at least 51% owned and controlled by women who are U.S. citizens.
- Women must manage day-to-day operations and also make long-term decisions.
This means that the company must be owned by one or more women, run by them on a daily basis, and they need to be in charge of operations and decision making.
Examples of Women-Owned Small Business SBA 8(a) Fraud
One example of women-owned SBA8(a) fraud is the whistleblower case against UFC Aerospace LLC. Two women were listed as majority owners of the company, but documents showed neither had a day-to-day role in managing and running the operation. The company was accused of falsely representing their women owned status. This status gave them the opportunity to earn $48 million in federal contracts. The lawsuit was brought under the False Claims Act and seeks triple damages, plus penalties.
Why Should I Become a Whistleblower in a Women Owned Small Business Fraud Claim?
People who become whistleblowers can receive a reward of up to 30% of the funds recovered by the government. Companies committing women-owned business fraud against the SBA8(a) program can face fines up to three times the amount lost by the government, along with penalties for each claim.
To encourage whistleblowers to come forward and report fraudulent activities, legal safeguards are in place. Whistleblowers initiate what is called a “qui tam lawsuit” to safeguard themselves from retaliation by their employer.
The first 60 days of a whistleblower’s lawsuit are confidential and sealed to make sure the company under investigation is unaware of the whistleblower’s identity.
Whistleblowers are protected even after their identities are revealed. According to the False Claims Act, if an employee is subjected to wrongful termination, harassment, or discrimination, they may be entitled to reinstatement, back pay, and compensation for legal expenses.
Examples of Women-Owned Small Business Fraud
According to the Small Business Administration, in order to be considered a women-owned small business the business must meet two specific requirements about the leadership and management of the business:
- Be at least 51% owned and controlled by women who are U.S. citizens
- Have women manage day-to-day operations who also make long-term decisions
This means that not only must the company be owned by one or more women, the company also needs to be run by them on a daily basis, and they need to be in charge of operations and decision making.
The most common way women-owned small business fraud happens is through the misrepresentation of a business as women-owned. The fraud happens when a business owner who is not a woman sets up a business to look like it is women-owned. This gives the business an unfair advantage in bidding for government contracts in the SBA 8(a) program.
One example of this is the whistleblower case against UFC Aerospace LLC, where they were accused of falsely representing their women owned status. This status gave them the opportunity to earn $48 million in federal contracts. Two women were listed as majority owners of the company, but documents showed neither had a day-to-day role in managing and running the operation. The lawsuit was brought under the False Claims Act and seeks triple damages, plus penalties.
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How We Can Represent You in a Women-Owned SBA 8(a) Whistleblower Fraud Case
Mctlaw attorneys are national trial attorneys who have an extensive track record of successfully representing clients. If you become a whistleblower, you’ll need a powerful advocate on your side to stand up for justice.
This is what our attorneys will do in your whistleblower case:
- We can help potential whistleblowers for women-owned SBA 8(a) fraud organize the facts of their case in order to begin the FCA process.
- We first submit an initial disclosure to the Department of Justice. This disclosure details the whistleblowers’ claims to preserve their place in line. Keep in mind, only the first whistleblower to bring forward a claim is rewarded. If you are second, your claim will be blocked by the first person to file a claim.
- As your attorneys, we outline the legal arguments of your case by drafting the Complaint about women-owned SBA 8(a) fraud. The complaint is filed under seal, meaning only you and the DOJ will know about the case at first.
- After the sealed complaint is filed, we work directly with the Department of Justice to help them evaluate the merits of your case. This leads to what is called a “relator interview.” Here, the DOJ attorneys will ask you questions about your case. It is critical to have your own lawyers prepare you for this interview.
- After the relator interview, we work with the DOJ to investigate your claim. This can include issuing subpoenas, or CIDs, to your employer, asking them for documents and other evidence of the women-owned small business fraud.
- At the end of the investigation stage, the government will decide whether to “intervene” in your case. If the government intervenes, they will take the lead in prosecuting your case. At this point your attorney makes sure you get the highest award possible.
If the government does not intervene, it means that your legal team will prosecute the case and take it to trial. The attorneys at mctlaw have litigated against some of the largest companies in the world, so we are prepared to take your claim all the way through trial.
Why Should I Report Women-Owned Small Business Fraud?
People who choose to become whistleblowers are eligible to receive a reward of up to 30% of the funds recovered by the government. When companies are found responsible, they can face fines up to three times the amount lost by the government, along with penalties for each claim.
To encourage whistleblowers to come forward and report women owned SBA 8(a) fraud, the government offers protection to the whistleblower. l. Whistleblowers initiate what is called a “qui tam lawsuit” to safeguard themselves from retaliation by their employer.
During the initial 60 days of a qui tam lawsuit, it remains confidential and sealed, ensuring that the company under investigation remains unaware of the whistleblower’s identity.
Whistleblowers are given protection even after their identities are revealed. According to the False Claims Act, if an employee is subjected to wrongful termination, harassment, or discrimination, they may be entitled to reinstatement, back pay, and compensation for legal expenses.
Other types of fraud commonly reported in whistleblower lawsuits include:
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