DOJ Accuses Idaho Firm of $53 Million in Small Business Fraud

Idaho construction company Northcon Inc. violated the False Claims Act by fraudulently representing to the federal government that it was qualified to receive contracts under the HUBZone program, which sets aside contracts to small businesses located in historically underutilized business zones, the U.S. Justice Department told a federal court in Idaho.

Northcon and its president, Randall L. Smith, presented or caused to be presented hundreds of false claims under HUBZone set-aside contracts that caused the U.S. to pay Northcom over $52,799,107, the DOJ said in its complaint filed with the U.S. District Court for the District of Idaho.

The defendants ...