Strong Mitigating Factors Trump Debarment
Client Alert | less than 1 min read | 07.30.07
In Canales v. Paulson (D.D.C. July 16, 2007, https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2006cv1330-47), the federal district court overturned a Treasury Department debarment from government contracting on the ground that the debarring official did not explain reasons for debarment in the face of strong mitigating factors (spotless record before the offense; five years since the incident; extensive business with the government in the interim; misdemeanor conviction) presented to him at the debarment proceeding.
Insights
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On October 20, 2026, the U.S. Department of Justice’s (DOJ) National Fraud Enforcement Division announced a new whistleblower rewards initiative, the Fraud Whistleblower Incentive Program (WHIP). Assistant Attorney General Colin M. McDonald issued a directive earlier this month directing Division leadership to design and implement policies and programs that incentivize whistleblowers to bring forward credible information pertaining to fraud. The new WHIP incentive pays awards of $10,000 to $30,000 for qualifying tips at or around the time criminal charges are filed or unsealed, rather than years later at case resolution.
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Executive Order Creates Women’s Health Task Force, Rescinds Prior Initiatives
