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A building company out of O’Fallon, Illinois, has been ordered to pay the United States $400,000 following allegations they obtained building contracts in a fraudulent manner.
U.S. Attorney for the Southern District of Illinois, Steven D. Weinhoeft, says R&W Builders, Inc out of O’Fallon violated the False Claims Act by falsely obtaining construction contracts reserved for disadvantaged small businesses.
R&W had been previously participating in the Small Business Administration’s 8(a) Business Development Program. The problem, they continued to gain the federally backed contracts after they were no longer eligible to do so. The U.S. Attorney says some of the contracts the company profited from involved construction work being done at Scott Air Force Base.
The investigation into R&W’s activities was conducted by the SBA Office of Inspector General, the Department of Defense Office of Inspector General, the Air Force OSI, and the Defense Contract Audit Agency.