Entries by Kenneth G. Coffin

DOJ’s FOCUS Initiative: An Invitation or a Warning to Data Miner Relators?

On April 30, 2026, the Department of Justice’s Civil Division announced the Fraud Oversight through Careful Use of Statistics, or FOCUS, initiative. The initiative is aimed at a fast-growing category of False Claims Act relators that exploded in the aftermath of the pandemic and the Paycheck Protection Program: “data miners” who analyze publicly available government data to identify potential fraud and then file qui tam complaints. DOJ’s message to these non-traditional relators is twofold. First, the Department seems to have accepted that data-miner relators are here to stay, and so has invited sophisticated, well-supported data analysis that can help identify fraud that might otherwise go undetected. But second, DOJ intends to prioritize data-miner relators who can demonstrate meaningful pre-filing diligence, analytical rigor, familiarity with the governing program rules, and legally sufficient allegations.

For companies in sectors with substantial government funding or reimbursement, including healthcare, life sciences, defense, education, technology, and other government contractors, the practical takeaway is straightforward. Companies should evaluate their own publicly available data with the same skepticism and sophistication that a relator, short seller, or agency analyst might apply. Leveraging enhanced analytics and AI to match and front-run potential data miner-driven qui tams will allow companies to quickly assess the likely source of government interest, and explain it.

New Guidance on U.S. Procurement Raises Risk to Federal Contractors From Potentially Discriminatory Practices

 The Trump Administration is advancing a coordinated effort to tie federal funding and contracting eligibility more closely to its interpretation of antidiscrimination law. Recent Federal Acquisition Regulation (FAR) guidance directs agencies to incorporate a new contract clause prohibiting practices the Administration deems discriminatory, while proposed revisions to System for Award Management (SAM) certifications would require recipients of federal grants and other financial assistance to affirm compliance with similar standards. These developments build on earlier Department of Justice guidance outlining the types of conduct the Administration views as unlawful and are reinforced by a recent False Claims Act (FCA) settlement signaling a willingness to pursue enforcement in this area. Together, the FAR changes and proposed SAM revisions point to a more integrated enforcement framework—one that expands certification and disclosure obligations, links compliance more directly to FCA materiality, and increases oversight and reporting expectations. For federal contractors and grant recipients, the result is a heightened risk environment requiring careful reassessment of policies, internal controls, and subcontractor compliance in anticipation of greater scrutiny from both contracting agencies and enforcement authorities.