# GSA federal contractor fraud investigation

> Live situation record from CLSTR: https://clstr.news/situations/gsa-federal-contractor-fraud-investigation
> Updated: 2026-08-25T13:00:04.000Z. Sources: 2. Developments: 2.

The General Services Administration (GSA) has identified more than $13 billion in suspected fraud involving approximately 1,000 federal contractors. This investigation, which began in March, covers a wide range of issues including COVID-19 spending, bid rigging, bribery, and cybersecurity-related false claims.

One specific case highlighted during this crackdown involved Broadway Electric Inc. and Cornerstone Contracting Inc. The companies, along with executives John Oehler and Christian Blake, agreed to pay $21.3 million to settle False Claims Act allegations. The scheme, which operated from 2017 to 2025, allegedly used service-disabled veteran-owned small businesses as fronts to secure public contracts, with the executives retaining the majority of the funds.

## Timeline

### 2026-08-25: GSA uncovers $13B in suspected fraud involving 1,000 contractors

The GSA has uncovered over $13 billion in suspected fraud involving roughly 1,000 federal contractors, covering areas such as COVID-19 spending, bid rigging, and Small Business Administration programs.

2 sources. https://clstr.news/cluster/gsa-uncovers-13b-in-suspected-fraud-involving-1000-contractors

### 2026-07-30: U.S. Government Recovers $21.3 Million from Veteran Contract Fraud

The GSA recovered $21.3 million from Broadway Electric and Cornerstone Contracting for a veteran‑contract fraud scheme, rewarding whistleblowers with $3.67 million.

2 sources. https://clstr.news/cluster/us-government-recovers-213-million-from-veteran-contract-fraud

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Cite as: GSA federal contractor fraud investigation. CLSTR, https://clstr.news/situations/gsa-federal-contractor-fraud-investigation