President Trump recently issued Executive Order 14173 titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (“Order”). The Order broadly aims to eliminate diversity, equity, and inclusion (“DEI”) policies and programs across the Government. In doing so, the Order also signals that the Government will scrutinize the DEI policies of prospective contractors and grantees under federal anti-discrimination laws and may use the federal False Claims Act (“FCA”) to police perceived violations.
The FCA was enacted in the midst of the U.S. Civil War, in 1863, to combat abuses by defense contractors taking advantage of lucrative government spending to sell bullets that would not fire and boots that fell apart.
How, then, does the administration tie this old anti-fraud statute to DEI?
False Claims Act Overview
United States Code Title 31, Section 3729 defines “false claims” essentially as false or fraudulent demands for payment submitted to the government. To deter such fraud, the FCA imposes treble damages and inflation-adjusted civil penalties of $14,308 to $28,619 for each false claim for payment. The statute contemplates both direct enforcement by the Government and qui tam suits by private whistleblowers as “Relators” on the Government’s behalf.
To violate the FCA, a representation must be both false and material to payment. The concept of falsity under the FCA encompasses express or implied false certifications of compliance with federal laws or...
Nicola Peltz's friends have spoken out against the 'false claims' that are being made against her amid the ongoing 'feud' between the Beckham family and their son Brooklyn's wife Entertainment (Ima...