O'Keefe Media Group Alleges $100 Billion Federal Contracting Scam, Citing Undercover Investigation

O'Keefe Media Group (OMG) has published an undercover investigation alleging a $100 billion federal contracting scam involving ATI Government Solutions and its contract manager, Melayne Cromwell. The report, released on October 20, 2025, claims ATI exploited the Small Business Administration's (SBA) 8(a) program by using its Native American-owned status to secure over $100 million in no-bid government contracts, then allegedly subcontracting 80% of the work while performing only 20%. The investigation has drawn attention to the tactics used, with commentator Ryan Lackey tweeting, > "What's confusing here is 1) the bad disguise 2) was the disguise capable of the 'honeypot' tactic vs Melayne? Traditionally every one of the O'Keefe things has been because the target was trying to f*** the undercover. Implausible but terrifying in this case."

The OMG investigation detailed how undercover journalists, posing as representatives from a cybersecurity firm, approached Cromwell under the guise of hiring her side catering business. During a meeting in Arlington, Virginia, Cromwell reportedly admitted ATI secures contracts due to its tribal status, stating, "Because we’re Native American-owned, we’re heavily favored for government contracts. There’s no bidding war." She further explained that ATI acts as a "pass-through," taking a significant portion of the funds while subcontractors perform the majority of the work.

Following the public release of the investigation, Cromwell issued a statement denying affiliation with ATI and asserting that OMG did not identify themselves during the initial interaction. She claimed that OMG representatives later approached her in a parking lot, revealing their identity and the use of a disguise, including a wig, during their prior meeting. Cromwell explicitly stated, "I did not consent to the use or public dissemination of my image, voice, or statements in any form of media."

The alleged scheme appears to violate federal acquisition regulations, specifically FAR 52.219-14, which mandates that prime contractors perform at least 50% of the work. The OMG report highlights that ATI's admitted 20% work performance constitutes a "textbook case" of a pass-through scheme. This comes after the U.S. Supreme Court's May 2025 ruling in Kousisis v. United States, which determined that false representations of minority status to obtain federal contracts constitute wire fraud.

James O'Keefe, founder of OMG, established the group after his departure from Project Veritas, continuing his practice of undercover investigations. The report suggests that ATI is one of potentially thousands of companies exploiting the 8(a) program, which was designed to support disadvantaged businesses but may now be costing taxpayers billions annually through such loopholes. OMG has indicated that a second part of the investigation is forthcoming.