How Trump’s ‘Buy American’ Order May Shape Fraud Cases

A Washington jury will decide this fall if Capitol Supply Inc.'s sale of paper shredders made in China—rather than the U.S.—defrauded the General Services Administration.

A district court opinion said GSA personnel gave Capitol Supply “mixed signals” as to how critical compliance with the Trade Agreements Act and Buy American Act was. The inconsistency forced the court to rule that it was inconclusive whether Capitol Supply violated the False Claims Act.

Capitol Supply could beat the case if it convinces the jury that the government was always going to pay for its products—American or not. That would show that compliance ...