BOISE, ID – Sanford Federal, Inc. and its owner, Joseph Mandour, have agreed to pay $3.1 million to settle allegations that the company violated the False Claims Act in connection with dozens of federal contracts.
According to the U.S. Attorney’s Office for the District of Idaho, the case involved 49 government contracts across the country. Prosecutors allege that Sanford and Mandour misrepresented employee identities, used fraudulent credentials in bids, and misclassified the company’s size to improperly qualify for contracts reserved for small businesses. Authorities also said the company secured a contract set aside for service-disabled veteran-owned small businesses but then violated subcontracting requirements by failing to perform the work as required.
“Government contractors are important partners that help us achieve our various government missions. But misrepresentations in bids undermine the integrity of the bid process and deprive legitimate businesses of the opportunity to compete,” Acting U.S. Attorney Justin Whatcott said.
Federal investigators from the Department of Veterans Affairs, the Department of Commerce, and the Department of Defense emphasized the settlement reflects a broader effort to safeguard programs designed for small and veteran-owned businesses. “When unscrupulous individuals manipulate programs intended to support small businesses, they undermine trust, weaken competition, and deny opportunities to honest business owners,” said Christopher W. Dillard, Special Agent in Charge of the Defense Criminal Investigative Service.
The investigation was led by the U.S. Attorney’s Office in Idaho with assistance from the VA, Commerce Department, Air Force, Army, Department of Defense, Small Business Administration, and General Services Administration. Assistant U.S. Attorneys Elliot Wertheim and Robert Firpo handled the case.
Officials stressed that the settlement resolves allegations only, with no admission of liability by Sanford Federal or Mandour.
