ROSE Report: Navigating the Supreme Court’s New Fraud Standard

Issue 93 - Navigating the Supreme Court’s New Fraud Standard

Supreme Court Decision Could Spur Prosecutions of Government Contractors

On May 22, 2025, the U.S. Supreme Court dropped a bombshell for government contractors in Kousisis v. United States. The ruling? You could face criminal fraud charges for misrepresenting your eligibility to win a contract—even if you deliver flawless work and the government loses nothing. For small to mid-size GovCons in the $700+ billion federal procurement market, this decision raises the stakes, especially as the Department of Justice (DOJ) ramps up its fight against procurement fraud in 2025.

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Government Contracting in a Tariff Era: How AI, Automation, and Operational Data Give US-Based Firms the Edge

Markets responded dramatically after President Trump partially reversed course and paused many of the newly imposed tariffs for 90 days. The S&P 500 surged 9.5% on the 9th —one of its biggest single-day gains since World War II—after the administration confirmed that most tariffs outside of China would be temporarily suspended. Treasury Secretary Scott Bessent clarified that while the 10% baseline tariff on global goods would remain, elevated rates on countries like the EU and Japan were being paused. However, tariffs on Chinese imports increased to 145%, signaling continued volatility.

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