Contact

Click here for a confidential contact or call:

1-212-350-2774

Archive

Page 8 of 45

September 27, 2021

The State of New York has reached a $6 million settlement with electricity provider National Grid to resolve a fraud investigation launched by a whistleblower’s qui tam suit.  As part of its contract with the Long Island Power Authority (LIPA), National Grid was tasked with reading meters, collecting payments, and providing customer service, while LIPA provided the actual electricity.  For over four years, however, National Grid allegedly underreported the amount of electricity being delivered to homes and businesses, costing LIPA and the state millions in lost revenue.  The whistleblower in this matter will receive $1.41 million, while the settlement proceeds will go toward subsidizing energy upgrades for low-income residents.  NY AG

Tagged in: FCA State, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

September 27, 2021

Oklahoma-based Devon Energy Corporation and its affiliates, Devon Energy Corp. and Devon Energy Production Company, LP (collectively, “Devon”) have agreed to pay $6.15 million to resolve allegations under the False Claims Act.  As a lessee of federal land, the oil and natural gas exploration and production company was required to pay royalties on gas found and produced on that land, as well as put the gas in marketable condition on its own dime.  According to the allegations, however, Devon underreported and underpaid royalties to the Department of the Interior by improperly deducting payments made to third-parties, including payments made to put the gas in marketable condition.  USAO CO

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

September 10, 2021

Defense contractors Southeastern Equipment Co., Inc. and SECO Parts and Equipment Co. have agreed to pay $900,000 to resolve allegations that they knowingly billed for and provided equipment that was not in compliance with the Buy American Act or the rules of the U.S. Army’s Simplified Nonstandard Acquisition Program.  The government’s investigation was initiated by a the filing of a whistleblower suit under the False Claims Act.  USAO SD Ga

Tagged in: Contract Non-Compliance, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Trade Agreements, Whistleblower Case,

August 26, 2021

Nonprofit organization the Florida Coalition Against Domestic Violence, its former CEO Tiffany Carr, and other former officers and directors, have entered into a settlement agreement with the State of Florida to pay $5 million to resolve civil claims arising from the alleged misuse of state grant funds and excessive compensation to Carr.  The entity will be dissolved.  FL

Tagged in: Government Procurement Fraud, Grant and Research Fraud,

August 18, 2021

Defense contractor Iris Kim, Inc. (“I-Tek”), together with its owner and four employees, were sentenced on criminal charges arising out of a fraudulent scheme to falsely qualify for Department of Defense and other federal government supply contracts set aside for service-disabled veterans, import Chinese-manufactured goods in violation of the terms of these contracts, and falsely relabel these goods as if they were made in the U.S.  The U.S. spent over $7 million on fraudulently-imported goods sold by I-Tek.  Owner Beyung S. Kim was sentenced to 58 months in prison, and the four employees were sentenced to a combined 93 months in prison.  USAO ED VA

Tagged in: Criminal Proceedings, Defense Contract Fraud, Government Procurement Fraud, Set-Asides and Preferences, Trade Agreements,

August 3, 2021

In the largest prevailing wage criminal case in the country, one of the largest contractors to complete projects on behalf of the State of Pennsylvania, Glenn O. Hawbaker, Inc., has agreed to pay more than $20 million in wages stolen from over a thousand of its workers.  Between 2003 and 2018, Hawbaker disguised wage theft on an estimated $1.7 billion in state contracts by artificially inflating costs by millions of dollars annually, and by claiming credits for prohibited costs.  PA AG

Tagged in: Government Procurement Fraud, Prevailing Wage,

July 20, 2021

Sage Consulting Group, Inc., and its president and owner Robert Pleghardt, agreed to pay $4.8 million to resolve claims that they paid kickbacks to two business, Wete & Company, Inc. and Index Systems, Inc., which were SBA certified as small businesses owned and operated by socially and economically disadvantaged individuals, to permit Sage to represent that those companies would be performing at least 50% of the work as subcontractors on Sage’s contracts with the Department of Defense Education Activity and Defense Human Resources Activity when, in fact, Sage performed 100% of the work.  USAO EDVA

Tagged in: Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Set-Asides and Preferences,

July 14, 2021

Diesel Direct, LLC of Stoughton, Massachusetts will pay $850,000 to resolve claims brought in a qui tam action alleging that the company knowingly delivered nonconforming petroleum diesel fuel to state agencies while charging for a higher-priced and more environmentally-friendly biodiesel fuel; improperly charged state agencies a federal fuel excise tax; and failed to comply with the state's Supplier Diversity Program requiring spending with women-owned, minority-owned, and veteran-owned businesses. Mass

Tagged in: Contract Non-Compliance, FCA State, Government Procurement Fraud, Pricing Fraud, Set-Asides and Preferences, Whistleblower Case,

July 6, 2021

Defense contractor AAR Corp. and its subsidiary, AAR Airlift Group Inc., have agreed to pay $11 million to resolve allegations of knowingly failing to maintain U.S. military aircrafts in accordance with U.S. Transportation Command (TRANSCOM) contracts.  The alleged False Claims Act violations involved nine helicopters that were deemed not airworthy and not mission capable as a result of the failures.  A former Airlift employee who filed the underlying qui tam complaint, Christopher Harvey, will receive over $2 million as part of the settlement.  USAO SDIL

Tagged in: Contract Non-Compliance, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

June 30, 2021

Armed Forces Services Corporation (AFSC) d/b/a Magellan Federal has agreed to pay over $4.3 million to resolve its liability under the False Claims Act.  In a written disclosure to the U.S. Small Business Administration, AFSC revealed that a former executive had orchestrated kickbacks for himself and two other executives in exchange for awarding subcontractors work on federal contracts.  USAO EDVA

Tagged in: Bribery and Bid-Rigging, FCA Federal, Government Procurement Fraud, Set-Asides and Preferences,

1 … 5 6 7 8 9 10 11 … 45

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: