Contact

Click here for a confidential contact or call:

1-212-350-2774

Archive

Page 10 of 45

May 27, 2021

Bank Julius Baier & Co. Ltd. (BJB), a Swiss bank with international operations, will pay $79 million in penalties and enter into a three-year deferred prosecution agreement to resolve a criminal investigation into the bank’s involvement in a money laundering conspiracy that fueled an international soccer bribery scheme.  BJB admitted that it conspired to launder over $36 million in bribes through the United States to soccer officials with FIFA and other federations, in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches.  BJB’s Anti-Money Laundering controls failed to detect or prevent the money laundering, despite knowing that certain client accounts were associated with international soccer, which was generally understood to involve high-corruption risks.  A BJB executive directed that the opening of these accounts be fast-tracked in the hope that the clients would provide lucrative business.  DOJ

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, Money Laundering,

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,

April 29, 2021

California-based Tungsten Heavy Powder, Inc. (THP) has agreed to pay over $5.6 million to resolve a qui tam lawsuit by former employee Gregory Caputo and Global Tungsten & Powders Corporation.  In violation of the False Claims Act, THP allegedly falsely certified that certain defense articles procured by the Israeli government and financed by U.S. grant funds were sourced from and manufactured in the United States, when instead they were sourced from China and manufactured in Mexico.  For bringing the lawsuit, Caputo will receive a 17% share of the settlement proceeds.  USAO SDCA

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

April 20, 2021

A construction firm in California that allegedly violated federal contracting rules has agreed to pay $2.5 million to resolve civil and criminal charges relating to the misconduct.  In order to qualify for contracts set aside for service-disabled, veteran-owned small businesses (SDVOSB), the owners of Stronghold Engineering, Inc. (SEI) colluded with Kadena Pacific, Inc. (KPI)—owned by a qualifying veteran and the father of SEI owner Beverly Bailey—to obtain fourteen contracts from the VA that were intended for SDVOSBs.  USAO CDCA

Tagged in: Contract Non-Compliance, Criminal Proceedings, Government Procurement Fraud, Set-Asides and Preferences,

March 19, 2021

Following an earlier federal settlement, construction management company V.J. Associates, Inc., and its affiliates, will pay a total of $1.875 million to resolve claims brought in a whistleblower complaint on behalf of Massachusetts, New Jersey, and New York.  Defendants provided cost estimating and scheduling services on public works projects, and admitted to submitting false bills to prime contractors by inflating employee hours on contracts on which they were paid on a time-and-expense basis.  Employees internally referred to this overbilling as “juicing” and “tagging” hours.  NY; MA

Tagged in: Falsifying Invoices, FCA State, Government Procurement Fraud, Whistleblower Case,

March 19, 2021

Humanitarian organization the International Rescue Committee, which contracted with USAID to provide humanitarian assistance for internally-displaced persons in Syria, will pay $6.9 million in a settlement resolving claims under the False Claims Act. The settlement followed an investigation by the USAID OIG into an alleged kickback and bid-rigging scheme involving IRC’s acquisition of goods and services between 2012 and 2015, which resulted in USAID paying inflated prices.  USAO DC

Tagged in: Bribery and Bid-Rigging, FCA Federal, Government Procurement Fraud, Government Programs Fraud,

March 1, 2021

Multinational software engineering company SAP Public Services, Inc., has agreed to pay $2.2 million to resolve allegations of failing to pay required fees on contracts signed under the GSA’s Multiple Award Schedule program, which provides a streamlined process for all levels of government agencies to purchase goods and services at discounted prices.  Under MAS contract terms, SAP was required to pay fees that help cover the GSA’s cost of administering the program, but a government investigation found that not only had SAP failed to do so, it did not always meet other contractual requirements.  USAO EDPA

Tagged in: Contract Non-Compliance, FCA Federal, Government Procurement Fraud,

February 26, 2021

United Airlines will pay a total of $49 million to resolve criminal and civil claims that its cargo division fraudulently overcharged the U.S. Postal Service under International Commercial Air (ICAIR) contracts by which United transported U.S. mail internationally.  While the contracts required United to bill the government based on the delivery of mail receptacles, as supported by departure and arrival scans of the receptacles, United submitted false data that was not based on actual scans or the movement of mail, and United employees who knew about the false data and billings took steps to conceal this information.  To resolve the criminal claims, United will pay $17.3 million in penalties and enter into a non-prosecution agreement including specific compliance and reporting requirements; to resolve civil claims under the False Claims Act, United will pay $32.2 million.  DOJ

Tagged in: Contract Non-Compliance, Criminal Proceedings, Falsifying Invoices, FCA Federal, Government Procurement Fraud,

February 19, 2021

Information Innovators Inc. (Triple I), a federal technology contractor in Virginia, has agreed to pay over $6 million to settle claims that a predecessor company knowingly overbilled the Department of Homeland Security (DHS) on an Enterprise Acquisition Gateway for Leading Edge Solutions Contract (EAGLE contract) from 2007 to 2014.  The alleged False Claims Act violations by Creative Computing Solutions Inc. (CCSi) involved billing DHS for work performed by under-qualified CCSi employees at rates reserved for more qualified employees.  DOJ; USAO MD

Tagged in: FCA Federal, Government Procurement Fraud,

February 17, 2021

French contractor COLAS Djibouti SARL will pay a total of $14.5 million to resolve claims that it supplied substandard concrete under a contract with the U.S. Navy for construction of Navy airfields in the Republic of Djibouti.  Colas Djibouti was required to certify that concrete supplied met contractual specifications for composition and characteristics, but made fraudulent misrepresentations and created fictitious testing results regarding the concrete’s composition and characteristics.  Defendant entered into a deferred prosecution agreement on criminal claims, paying $12.5 million ($10 million in forfeiture and restitution, and $2.5 million as a criminal penalty).  Defendant also entered into a civil settlement for  $3.9 million, receiving a credit of $1.96 million for its payment under the DPA.  DOJ; USAO SD Cal

Tagged in: Contract Non-Compliance, Criminal Proceedings, Defense Contract Fraud, FCA Federal, Government Procurement Fraud,

1 … 7 8 9 10 11 12 13 … 45

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: