Civil Rights Fraud Initiative is launched by Feds.
The Justice Department announced a new Civil Rights Fraud Initiative on Monday, which will use the False Claims Act to look into and prosecute says brought against officially sponsored organizations that knowingly violate civil rights laws, including colleges and universities.
The work, which was formerly passed by Congress in 1863 to combat fraud committed by security companies during the Civil War, will now be applied to ensure universities and other institutions do not permit discrimination against people of color, such as favoring one culture over another.
Attorney General Pamela Bondi stated in a media release announcing the action that “institutions that take federal funds just to help anti-Semitism and encourage controversial DEI policies are putting their access to federal funds in danger.”
According to the department, the act allows private citizens to file “qui tam” lawsuits against those who have allegedly defrauded the government. Those who succeed in filing qui tam lawsuits may receive a portion of the compensation.
In essence, whistleblowers receive a share of any fines, which means campuses that rename pro-DE I initiatives or conduct them under the radar could be in danger from campus employees who want to outsource them and potentially receive a payout, as The College Fix previously reported.
A university that accepts federal funding may be in violation of the False Claims Act if it promotes antisemitism, blocks Jewish students, permits men to enter women’s bathrooms, or mandates that women compete against men in athletic competitions. According to a DOJ memo outlining the new initiative, colleges and universities” cannot tolerate federal funding while discriminating against their students.”
Law firms and other organizations were aware of this tactic from a recent slew of articles that were published prior to the initiative.
The law firm of Paul Hastings wrote that whistleblowers will have incentives to file qui tam lawsuits alleging that DEI programs resulted in discrimination because of the potentially significant damages and civil penalties offered by the FCA.
Blank Rome, a different law firm, noted that the new administration “perspectives DEI programs as a potential source of discrimination,” despite the fact that many workplace DEI programs have previously been viewed as legal.
The firm’s attorneys expressed concern that the Trump administration” will vigorously enforce” the executive order to end unlawful discrimination and restore merit-based opportunity.
However, Blank Rome claims that “winning an FCA case on the grounds that [a ] DEI program violates applicable federal law will not be a slam dunk,” because” the plaintiff… bears the burden of proving each element.”
The company suggested that businesses check their DEI programs and their public statements and messaging for appropriateness. ” Do not retaliate against employees ( or anyone ) who inquire about the DEI program’s legality,” urged Blank Rome.
The College Fix reached out to the U.S. Department of Education and Paul Hastings ‘ legal representatives, but they were unsuccessful.
MORE: The False Claims Act’s law could be the death knell for rebellious universities
DOJ screenshot and Justice Department logo
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