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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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Catch of the Week – Hybrid Tech pays $29 Million to Resolve Claims of Collusive Bidding on Sale of Energy Department Loan in Case Brought by Creditors

Posted  02/6/20
Gavel close-up
Our Catch of the Week arises out of misconduct in a corporate restructuring, features a unique whistleblower, and resulted in a $29 million recovery by the government. The defendants, Hybrid Tech Holdings, LLC and related entities, were alleged to have rigged bids in a government auction of a loan made to Fisker Automotive under the Department of Energy’s Advanced Technology Vehicles Manufacturing loan...

January 31, 2020

Airbus SE has agreed to pay more than $3.9 billion to resolve charges by U.S., U.K., and French authorities of violating the Foreign Corrupt Practices Act (FCPA), the Arms Export Control Act (AECA), and the International Traffic in Arms Regulations (ITAR).  From at least 2008 until 2015, the French aircraft manufacturer allegedly paid bribes to officials in China, Ghana, Indonesia, Malaysia, Sri Lanka, and Taiwan, in exchange for improper business advantages and other favorable treatment.  Additionally, Airbus also failed to provide accurate information to the State Department’s Directorate of Defense Trade Controls (DDTC) about commissions it paid in connection with the sale or export of arms.  DOJ; USAO DC

January 31, 2020

A bidder in the sale of a loan from the Department of Energy has agreed to pay $29 million to resolve allegations of colluding to rig the auction of the loan, thus depriving the agency of a fair bidding process and reducing the amount recovered by the agency.  The allegations that Hybrid Tech Holdings LLC, Hybrid Technology LLC, and Ace Strength International LTD exerted pressure on two other bidders to suppress their bids during the live auction were made by whistleblowers William Baldiga and the FAH Liquidating Trust in a qui tam suit.  The relators will share in $5.2 million of the recovery.  DOJ; USAO DC

January 23, 2020

DynCorp International has agreed to pay $1.5 million to settle allegations that two former company officials, Wesley Aaron Struble and Jose Rivera, violated the Anti-Kickback Act and False Claims Act in connection with a Department of State property lease.  The two co-conspirators allegedly solicited and received $390,000 in cash kickbacks from an Iraqi subcontractor, the Al-Qarat Company, in exchange for influencing Dyncorp's lease of the property in Baghdad.  USAO EDVA

Top Ten Non-Healthcare False Claims Act Recoveries of 2019

Posted  01/10/20
False Claims Act
This year, federal and state governments recovered hundreds of millions of dollars thanks to whistleblowers who came forward to report fraud under the federal False Claims Act and state False Claims Acts.  Whistleblowers reported a wide-range of misconduct involving government contracts, including fraud by defense contractors, airlines, and even a major research university.  Defendants’ deception ran the gamut...

Why Whistleblowers Should be Honorary Members of the new Antitrust Strike Force

Posted  12/20/19
When our firm represented a whistleblower who brought down the largest oil companies in Korea for bid-rigging, resulting in fines and penalties of over $360 million, we did not imagine the case would play a role in launching a new initiative, the Justice Department’s Procurement Collusion Strike Force. The Strike Force is an interagency partnership tasked with rooting out collusive schemes like bid-rigging. The new...

October 4, 2019

Zaldy Sabino, formerly a contracting officer with the U.S. State Department, has been convicted of charges related to contracting fraud.  Sabino received hundreds of thousands of dollars in cash from the owner of a construction firm in Turkey that had multiple multi-million dollar contracts with the State Department.  Sentencing is set for February, 2020.  DOJ

September 26, 2019

A military contractor who previously plead guilty to accepting illegal kickbacks and committing wire fraud has been sentenced to over 2 years in prison and ordered to pay $1.4 million in restitution.  Despite being the true owner of Walsh Construction Services, LLC, James Conway concealed his ownership by signing contracts under Keith Walsh, a fictitious name.  He then used Walsh Construction to bill for $1.4 million of work the contractor purportedly performed at Picatinny Arsenal and Joint Base McGuire-Dix-Lakehurst, as well as collect on $180,345 of kickbacks from four subcontractors.  In addition to the prison term and restitution order, Conway was sentenced to three years of supervised release.  USAO NJ

September 19, 2019

Following his conviction at trial in September 2018, Azam Doost, the owner of a marble mining company in Afghanistan, has been sentenced to 4.5 years in prison, and ordered to pay $8.9 million in forfeiture and restitution to the government.  Doost had been convicted for his role in fraudulently obtaining and failing to repay a $15.8 million loan from the Overseas Private Investment Corporation, a U.S. government agency, to Equity Capital Mining LLC, which Doost owned at the time.  DOJ

How Businesses Can Use Whistleblower Reward Laws to Stop Unfair Competition

Posted  07/22/19
Runner in track race starting before other racers
Most anyone can be a whistleblower. The role is not limited to the corporate insider or company employee at the meeting, on the conference call or in receipt of the email or text message where the “smoking-gun” evidence of fraud or misconduct is disclosed. Whistleblowers can be any person, or an entity, with non-public information about fraudulent conduct giving rise to a whistleblower claim.  Often, businesses...
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