Click Here to Sign Up for SBA OIG Email Updates on Recent Investigative Cases, Audit Oversight Reports, and General News
Click Here to View the Original U.S. Department of Justice (DOJ) Press Release
Broadway Electric Inc. (Broadway), Cornerstone Contracting Inc. (Cornerstone), Chief Executive Officer John Oehler, and President Christian Blake agreed to pay $21.3 million to resolve False Claims Act allegations that they improperly obtained federal contracts reserved for service-disabled veteran-owned small businesses and other eligible small businesses.
“Congress intended certain federal contracts to be set aside for small businesses and for service-disabled veterans who sacrificed for this country,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will hold accountable those who fraudulently obtain, or assist others in fraudulently…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.