N.Y. Contractor Again Facing Veteran-Owned Business Fraud Suit

A New York construction company and its owner will again have to defend themselves against a False Claims Act suit alleging that they misrepresented their eligibility to receive contracts intended for service-disabled, veteran-owned small businesses, the Second Circuit ruled Thursday.

The government adequately alleged that Veteran Enterprises Co. Inc. and Lee Strock made misrepresentations that were material to the government’s decision to make payments under awarded contracts, as required by Universal Health Services Inc. v. United States ex rel. Escobar, the U.S. Court of Appeals for the Second Circuit said.

Materiality concerns whether the government would have withheld payment ...