The GS Foods Group Inc. in Ontario, California, agreed to pay more than $949,000 to settle allegations of False Claims Act violations related to small business contract bidding.
The company was accused of improperly securing contracts designed for small businesses despite not qualifying due to affiliations with other companies. The contracts involved supplying food to facilities operated by the Federal Bureau of Prisons and U.S. Immigration and Customs Enforcement facilities.
GS Foods’ subsidiaries, GoodSource Solutions Inc. and Dori Foods Inc., allegedly misrepresented their eligibility and obtained contracts they were not qualified for between Oct. 1, 2018, and March 8, 2024. GS Foods self-reported the issue to the Department of Justice’s Office of Inspector General, cooperated with the investigation and implemented corrective measures. Corrective steps the company took included revising its code of conduct, forming an ethics and compliance management committee, appointing a chief compliance officer and enhancing employee training
The settlement was reached through a coordinated effort between the Justice Department’s Civil Division and DOJ-OIG’s Fraud Detection Office. The claims remain allegations, and no determination of liability was made.
Topics California
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