[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR26.107]

[Page 291-292]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 26_PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN DEPARTMENT OF 
TRANSPORTATION FINANCIAL ASSISTANCE PROGRAMS--Table of Contents
 
                  Subpart F_Compliance and Enforcement
 
Sec.  26.107  What enforcement actions apply to firms participating in the 
DBE program?

    (a) If you are a firm that does not meet the eligibility criteria of 
subpart D of this part and that attempts to participate in a DOT-
assisted program as a DBE on the basis of false, fraudulent, or 
deceitful statements or representations or under circumstances 
indicating a serious lack of business integrity or honesty, the 
Department may initiate suspension or debarment proceedings against you 
under 49 CFR part 29.
    (b) If you are a firm that, in order to meet DBE contract goals or 
other DBE program requirements, uses or attempts to use, on the basis of 
false,

[[Page 292]]

fraudulent or deceitful statements or representations or under 
circumstances indicating a serious lack of business integrity or 
honesty, another firm that does not meet the eligibility criteria of 
subpart D of this part, the Department may initiate suspension or 
debarment proceedings against you under 49 CFR part 29.
    (c) In a suspension or debarment proceeding brought under paragraph 
(a) or (b) of this section, the concerned operating administration may 
consider the fact that a purported DBE has been certified by a 
recipient. Such certification does not preclude the Department from 
determining that the purported DBE, or another firm that has used or 
attempted to use it to meet DBE goals, should be suspended or debarred.
    (d) The Department may take enforcement action under 49 CFR Part 31, 
Program Fraud and Civil Remedies, against any participant in the DBE 
program whose conduct is subject to such action under 49 CFR part 31.
    (e) The Department may refer to the Department of Justice, for 
prosecution under 18 U.S.C. 1001 or other applicable provisions of law, 
any person who makes a false or fraudulent statement in connection with 
participation of a DBE in any DOT-assisted program or otherwise violates 
applicable Federal statutes.