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Bribery and Bid-Rigging

This archive displays posts tagged as relevant to bribery and bid rigging in U.S. government contracting. You may also be interested in the following pages:

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April 25, 2022

David H. Wright, former general manager of the LA Department of Water and Power, will spend 72 months in federal prison after pleading guilty to one count of bribery. Wright accepted bribes from a lawyer to secure a $30 million no-bid contract for the lawyer’s company, Aventador Utility Services LLC, and thereafter accepted the position of CEO after he retired from LADWP. While still in his official capacity at LADWP, he lobbied the board to vote in favor of Aventador’s contract. CDCA

March 3, 2022

Multiple chemical companies agreed to pay a collective total of $11.7 million to resolve claims by state and local entities that from 1997 through at least 2011, they participated in a nationwide conspiracy to allocate territories and customers, unlawfully rig bids, and fix prices paid by government entities for the purchase of coagulant liquid aluminum sulfate, a chemical used in water treatment and purification.  The defendants include General Chemical entities, GenTek, Inc., Chemtrade entities, GEO Specialty Chemicals, Inc., C&S Chemicals, Inc., USALCO, LLC, Delta Chemical Corporation, and American Securities, LLC.  The Commonwealth of Virginia recovered $1.1 million in a whistleblower case initiated under the Virginia Fraud Against Taxpayers Act by Lawrence McShane.  VA

Top Ten Federal Financial Fraud Recoveries of 2021

Posted  01/21/22
Money with Gavel and Handcuffs
While 2021 may have felt like more of the same as the pandemic dragged on, it marked some new trends in federal financial fraud recoveries. As we predicted last year, the Anti-Money Laundering Act of 2020 has heralded some large recoveries against banks. The Act also established an Anti-Money Laundering Whistleblower Program, so that whistleblowers who report financial institutions engaging in money laundering –...

January 14, 2022

A former official with the Department of Defense’s Office of Inspector General who was accused of accepting bribes on a prime contract and defrauding the government has been sentenced to 7.5 years in prison.  While overseeing a contract that allowed federal agencies in the DC area to order telecommunication services and equipment, Matthew LumHo solicited and received bribes from a co-conspirator, William S. Wilson, in exchange for steering business to Wilson’s company.  Lumho also knowingly authorized fraudulent service orders for marked up services—essentially defrauding the government into paying for the bribes themselves—and repeatedly interfered with the criminal investigation.  USAO EDVA

October 1, 2021

Pharmaceutical manufacturers Taro Pharmaceuticals USA, Inc., Sandoz Inc. and Apotex Corporation have agreed to pay a total of $447.2 million to resolve alleged violations of the False Claims Act and Anti-Kickback Statute arising from unlawful compensation received through arrangements on price, supply and allocation of customers with other pharmaceutical manufacturers of various generic drugs.  In connection with the FCA settlements, Taro will pay $213.2 million, Sandoz will pay $185 million, and Apotex will pay $49 million.  The civil settlements are in addition to previous deferred prosecution agreements resolving related criminal charges, pursuant to which Taro paid a criminal penalty of $205.6 million, Sandoz paid a criminal penalty of $195 million, and Apotex paid a criminal penalty of $24.1 million.  DOJ

Catch of the Week: San Francisco Garbage Companies Cop to Bribing Corrupt City Regulator in $36 Million Deal with Feds

Posted  09/10/21
Garbage Truck Men Loading Trash Behind Truck
Three San Francisco trash and recycling companies, all Recology, Inc. subsidiaries, have agreed to pay $36 million in a corruption scheme involving substantial bribes to former San Francisco Public Works Director Mohammad Nuru. The SF Recology Group, which includes Recology San Francisco, Sunset Scavenger Company, and Golden Gate Disposal & Recycling Company agreed to a deferred prosecution deal on charges they...

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

June 25, 2021

Multinational telecommunications and internet service provider Level 3 Communications, LLC has agreed to pay over $12.7 million to resolve claims a former employee brought under the False Claims Act, alleging violations of the Anti-Kickback Act, False Claims Act, and Procurement Integrity Act.  Under a contract with the General Services Administration, Level 3 allegedly accepted kickbacks from subcontractors MSO Tech, Inc. and P.V.S. Inc. in exchange for steering work to them.  Additionally, under a contract with the Department of Homeland Security, Level 3 allegedly maintained that subcontractor PVS qualified as a contractually obligated woman-owned small business when in fact PVS is owned by a man.  USAO EDVA

June 7, 2021

An engineering firm in North Carolina, Contech Engineered Solutions LLC (Contech), has been ordered to pay $7 million in criminal fines and over $1.5 million in restitution to the North Carolina Department of Transportation (NCDOT).  Contech admitted that it conspired to rig bids and defraud the NCDOT, fraudulently obtaining contracts over a ten-year period.  DOJ charged a former Contech executive, Brent Brewbaker, as a co-defendant.  Brewbaker remains under indictment.  DOJ

May 28, 2021

Eric Pulier, who previously served as an executive at ServiceMesh, Inc., which later merged with Computer Sciences Corporation (CSC), entered into a consent judgment for $4.8 million in disgorgement, civil penalties, and interest.  The judgment resolved an SEC action alleging that Pulier paid more than $2 million in bribes to executives at the Commonwealth Bank of Australia to secure business for CSC.  Securing the Australia business entitled ServiceMesh to a $98 million earn-out payment from the CSC acquisition, and Pulier was personally entitled to $30 million of that earn-out.  SEC
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