Spike in False Claims Act activity in the federal marketplace

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Paul Debolt, co-chair of the Government Contracts Group at Venable LLP, discusses how the Trump administration’s efforts to eliminate waste in government could lead to a spike in False Claims Act cases.


The Trump administration is pushing for domestic preference requirements in government contracts. Because of this, it’s expected that the amount of False Claims Act cases will spike later in the year. Paul Debolt, co-chair of the Government Contracts Group at Venable LLP, says that the administration’s extreme focus on eliminating “fraud, waste and abuse” has caused big changes to the contracting environment.

 

“There’s been, from what we have seen in our practice, a criminalization of things that would have typically been contract administration issues. There’s a suspicion on the government’s side that I think causes them to go out and look for fraud more frequently,” Debolt said. “I also think that with… the experienced people leaving the government as younger people are coming in, they don’t necessarily have the business judgment that some of the older people have, and they are really risk‑averse in some cases.”