Entries by Kristin Graham Koehler

28 05 '26

DOJ Announces Accelerated Review of FCA Qui Tams Alleging Fraud Against State-Administered Benefits Programs

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It is not business as usual at DOJ.  In the latest announcement related to the Department’s efforts to fight alleged fraud, on May 27, 2026, Assistant Attorney General Brett Shumate issued a memorandum directing DOJ’s Civil Division and U.S. Attorneys’ Offices to accelerate the review of qui tams alleging fraud against federally funded state-administered benefits programs, including programs involving housing, food assistance, medical care, and cash assistance.   The memorandum, titled “Accelerating Review and Enhancing Enforcement in Benefits Fraud Matters,” implements President Trump’s March 2026 Executive Order establishing the “Task Force to Eliminate Fraud,” which we reported on here, and which directed the Department to take appropriate action to promote “meritorious” qui tams and to complete investigations sooner, including within the 60-day statutory period.

18 05 '26

Tariff Enforcement at the Forefront: Importer Agrees to Pay $549.5 million in Largest-Ever Trade-Related False Claims Act Settlement

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On May 12, 2026, the Department of Justice (“DOJ”) announced a $549.5 million settlement with Perfectus Aluminum Acquisitions LLC and four affiliated companies to resolve allegations that they violated the False Claims Act (“FCA”) by evading customs duties. This settlement is the largest trade-related settlement under the FCA.

The action was initiated by qui tam cases brought by individuals who worked for U.S.-based competitors and the Aluminum Extrusion Counsel and ultimately coordinated through the DOJ’s Trade Fraud Task Force, which involved cooperation between DOJ and the Department of Homeland Security. This case highlights the increasing use of the FCA to hold importers liable for the underpayment of customs duties, the Administration’s commitment to enforcing U.S. customs laws, and the potential for competitors and former employees to harness the FCA to motivate federal investigations into allegations of trade fraud.

This post examines the settlement and discusses its implications for importers, manufacturers, and other companies facing customs and trade enforcement risk.

01 05 '26

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

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 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.