The False Claims Act (FCA), a 162-year-old statute originally designed to combat fraud by defense contractors during the American Civil War.
The Department of Justice has launched an expansive investigation into the diversity, equity, and inclusion (DEI) programs of several of the nation’s most prominent corporations, signaling a significant escalation in the Trump administration’s efforts to dismantle race-conscious policies in the private sector.
According to a Dec. 29 report by The Wall Street Journal, federal investigators have issued demands for documents and internal information from companies, including Google and Verizon, targeting hiring and promotion initiatives that critics argue may violate federal law.
The probes are being conducted under the False Claims Act (FCA), a 162-year-old statute originally designed to combat fraud by defense contractors during the American Civil War. By utilizing this specific legal mechanism, the administration appears to be testing a theory that companies receiving federal contracts may have defrauded the government by misrepresenting their compliance with neutral hiring standards or by utilizing federal funds to support prohibited diversity quotas.
The investigation is not limited to the tech and telecommunications sectors. According to sources familiar with the inquiry, the Justice Department’s Fraud Section has extended its reach into the automotive, pharmaceutical, defense, and utility industries. Several executives from these...
The False Claims Act (FCA), a 162-year-old statute originally designed to combat fraud by defense contractors during the American Civil War. The Department of Justice has launched an expansive inv...