May 27, 2021

Navistar Defense LLC, a manufacturer of military vehicles, will pay $50 million to resolve False Claims Act allegations that it fraudulently induced the U.S. Marine Corps to enter into a contract modification at inflated prices for a suspension system for armored vehicles known as Mine-Resistant Ambush Protected (MRAP) vehicles.  During negotiations for the modification, Navistar was asked to provide certain sales information to assess the reasonableness of Navistar’s proposed prices.  The U.S. alleged that Navistar provided the government with fraudulent sales invoices to justify the company’s prices, and that the government relied on these invoices during negotiations.  The investigation was initiated by a qui tam complaint filed by whistleblower Duquoin Burgess, a former Government Contracts Manager for Navistar, who will receive $11,060,000 from the settlement.  DOJ

Tagged in: Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Pricing Fraud, Whistleblower Case, Whistleblower Rewards,