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If you’ve ever wondered how diversity became a billion-dollar hustle, buckle up, because James O’Keefe nailed it on camera in one of his best undercover stings yet, even if his disguise looked like it was straight out of a Spirit Halloween “Inspector Clouseau” kit.

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But all joking aside, for years, the federal government has bragged about a program you’ve probably never heard of called the “8(a) Program.” It’s run by the Small Business Administration. This program was sold as another feel-good initiative to help “socially and economically disadvantaged” small businesses. Basically, it was designed to help minority-owned companies compete for government contracts… classic DEI favoritism dressed up as a noble cause.

And that’s exactly what it was…

Just like every DEI-driven program, it turned into a massive scam.

Here’s how it was supposed to work: the government gives special, no-bid contracts to minority-owned businesses so they can grow.

But here’s how it actually worked: those minority businesses were actually shell companies that slapped a “minority-owned” label on the door so they could rake in your tax dollars while secretly handing the real work (and cash) to someone else. This is called a “pass-through” scam, and it’s made a lot of people filthy rich off your hard-earned tax dollars.

This is fake diversity meeting real corruption.

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And now, thanks to James O’Keefe’s latest undercover sting, we can see exactly how it’s done.

In the video, a contract manager at ATI Government Solutions, a company that’s pulled in more than $100 million in federal contracts, openly admits the whole thing is a fraud. The manager brags about using her company’s minority-owned status as a front to win government deals, then outsourcing 80 percent of the work to other firms, while still pocketing her own money. “Pass-throughs are a great thing,” she laughs. “We only do 20 percent. The rest goes to subs. And remember, there’s no competition.”

Infuriating.

James O’Keefe:

$100 Billion Federal Contracting Scam Exposed: 8(a) Firm Admits to Violating Federal Law, Using Minority-Owned Status as a Front to Obtain $100M+ No-Bid Government Contracts While Outsourcing 80% of the Work.

ATI Government Solutions Contract Manager, Melayne Cromwell Admits to Exploiting 8(a) SBA Program Through Pass-Through Scheme & Breaking Federal Law.

“I tell you pass throughs are a great thing!”
“We only do 20%… The rest goes to subs…”
“And remember, there’s no competition…”

So there it is, straight from the source. The 8(a) Program, one of the federal government’s biggest “diversity success stories,” is nothing more than a DEI money-laundering scheme.

Awesome.

And now, thanks to James O’Keefe blowing the lid off this massive scam, the Small Business Administration under Kelly Loeffler is stepping in to clean up the mess.

Her team has launched an official investigation into ATI Government Solutions and the Susanville Indian Rancheria, the so-called “minority-owned” partner used as the front in this pass-through operation. And she’s not stopping there…

The SBA has already begun a full audit of the 8(a) Program, combing through every contract from the past fifteen years to find out just how deep the corruption runs. She’s scaling back bloated DEI contracting goals, tearing down the shell games, and pulling authority from agencies like USAID that got too cozy with the same shady operators.

Truthfully, Kelly Loeffler ought to shut the whole 8(a) racket down for good.

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Kelly took to X to announce her plans.

Kelly Loeffler:

SBA has launched an investigation into ATI Government Solutions and Susanville Indian Rancheria.

This is why we have been conducting a full review of the 8(a) Program, ostensibly designed to help “socially and economically disadvantaged” small businesses compete in the federal marketplace. Yet, what we’ve discovered so far has been institutionalized abuse, which potentially amounts to billions of dollars in federal contracts that are run through shell companies, fraudulent pass-throughs, and other schemes.

That’s why in February, the SBA took immediate action to slash 8(a) contracting goals across the federal government. In June, we launched an audit of the program to review every 8(a) contract for the last 15 years. And in July, we rescinded the contracting authority of USAID, which was involved in a massive bribery scandal.

@JamesOKeefeIII has exposed an important truth. Like every other government program rooted in DEI, the 8(a) Program is rife with grift and fraud.

Under my leadership, the SBA is committed to restoring integrity and implementing strong reforms to protect U.S. taxpayers from further abuse.

The full audit is ongoing and whistleblowers may contact https://sbax.sba.gov/oigcss/

For years, DEI was treated like a moral shield for corruption: slap a “diversity” label on a scam, and suddenly no one’s allowed to ask questions. That era is hopefully ending, thanks in big part to James O’Keefe’s investigation.

Annual Ad-Free Subscription… Watch DEI’s favorite scam crumble, without the ads!

Donate… Help us keep sharing the “diversity” deals your tax dollars paid for…

Sign up for our email list… Because when the next DEI front gets caught, you’ll want a front-row seat.

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