A sweeping undercover investigation has ignited controversy across the federal contracting world after journalist James O’Keefe released footage allegedly exposing a billion-dollar fraud within the Small Business Administration’s 8(a) Business Development Program.
The video, published Monday by O’Keefe Media Group and already viewed more than 2.3 million times, features Melayne Cromwell, a contract manager for ATI Government Solutions, describing how her firm uses its minority-owned status to secure lucrative no-bid contracts before passing most of the work to outside firms. “I tell you pass-throughs are a great thing!” Cromwell says in the footage, adding that ATI completes only about 20 percent of each project — far below the 51 percent threshold required by federal rules.
$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… pic.twitter.com/o7EQ6mKZtY
— James O'Keefe (@JamesOKeefeIII) October 20, 2025
The 8(a) program, created to aid disadvantaged small businesses, has long faced scrutiny for loopholes that invite abuse. O’Keefe’s exposé follows a July 2025 SBA audit that uncovered similar violations, spurring a broad review of the program. SBA Administrator Kelly Loeffler confirmed that investigators have opened an immediate probe into ATI Government Solutions and several related contractors.
“This case represents a microcosm of one of the largest scams in American history,” O’Keefe said in a press release, alleging that ATI leverages its affiliation with the Susanville Indian Rancheria to win contracts exceeding $100 million, then funnels profits to non-minority partners. The practice, he argues, subverts both the letter and spirit of federal law designed to uplift genuinely disadvantaged enterprises.
The footage has renewed calls to overhaul — or even dismantle — the 8(a) program. “The truth has been buried for too long,” O’Keefe declared, urging citizens to expose similar abuses across government. Critics claim the program has devolved into a taxpayer-funded conduit for political favoritism and waste.
In her response, Loeffler condemned the alleged misconduct and signaled a sweeping cleanup effort. “Like every other government program rooted in DEI, the 8(a) Program is rife with grift and fraud,” she said, adding that findings from the ongoing 15-year audit would be referred to the SBA’s inspector general and the Justice Department for possible prosecution.
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Defund this from SBA
Outsource & CUT from SBA