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Contract Non-Compliance

This archive displays posts tagged as relevant to fraud arising from or resulting in non-compliance with government contracts. You may also be interested in the following pages:

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November 16, 2018

The owners and CEOs of the largest e-waste recycling company in Washington State have pled guilty and agreed to pay $1.1 million for lying to the public and to public agencies about recycling electronics in an environmentally safe manner. As the largest participant in the state's "E-Cycle Washington" program, Craig Lorch and Jeff Zirkle's company, Total Reclaim, was paid millions of dollars by customers like the City of Seattle to properly handle and dispose of millions of pounds of mercury-containing e-waste. However, through tracking devices hidden in surrendered products, local nonprofit Basel Action Network found that Total Reclaim was in fact secretly shipping their e-waste to Hong Kong, where they were dismantled without any sort of safety precautions. USAO WDWA

November 14, 2018

Former contractors George Patton and Henry Patton have pleaded guilty to defrauding the United States in federal contracts worth over $10 million. According to the DOJ press release, George Patton was barred from conducting business with the federal government but conspired with his brother, Henry, and wife, Lindsey, to obtain additional federal contracts by naming them owners of his new businesses. Separately, George and Lindsey Patton were also accused of evading about $61,000 in taxes, which, after penalties and interest, translated to a loss of $107,000. All three face sentencing early next year. DOJ

November 13, 2018

Two foreign airlines, British Airways and Iberia Airlines, have agreed to pay $5.8 million to resolve allegations brought under the False Claims Act that they falsely reported timestamps for deliveries made abroad. As part of their contracts with the United States Postal Service (USPS) to deliver U.S. mail to recipients at foreign posts, such as military bases, the airlines were required to submit accurate delivery information in order to obtain payment, but were found to have falsified that information instead. DOJ

Catch of the Week — Universal American Mortgage Company

Posted  10/19/18
Universal American Mortgage Company (UAMC), a Miami-based mortgage company, agreed on October 19 to a $13.2 million settlement to resolve allegations that it violated the False Claims Act (FCA) by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage-insurance requirements in connection with certain loans. UAMC is part of Lennar, one of America’s leading homebuilders. The settlement resolves allegations brought by Kat Nguyen-Seligman, a former employee of a...

October 15, 2018

Indal Technologies Inc. has agreed to pay $3.5 million to settle claims that it violated the False Claims Act by knowingly selling the U.S. Navy helicopter landing systems that used substandard steel. The alleged fraud by Indal Technologies involved the substitution of a stronger steel for a weaker, less inexpensive steel in a component that helps secure a landing helicopter onto certain Navy destroyers. Due to the possibility of rough winds and seas during landing, it is crucial for this component to be made of high strength steel. DOJ; USAO NJ

Havian opens trial in damages phase of FCA case against top PVC water-pipe maker, J-M Eagle

Posted  10/11/18
Constantine Cannon partner Eric Havian launched the damages-phase of a trial against J-M Eagle with opening statements on October 10, 2018. As reported by Daniel Siegal in Law360, a Los Angeles federal jury will hear evidence in a long-running case by public entities in several states who bought large transmission water-pipe from the nation’s number one PVC pipe company. A November 2013 jury unanimously found in Phase I of the...

October 5, 2018

Contractor Martin Enterprises, Inc. and its surety Philadelphia Indemnity Insurance Company have agreed to pay $61,016 to settle claims under the False Claims Act that Martin falsely claimed payment for work under the federal Blight Elimination Program, which is funded by the Troubled Asset Relief Program.  Martin had been required to fill excavation sites in Ft. Wayne, Indiana with clean fill, but instead filled them with construction debris.  USAO N.D. In.

September 17, 2018

A father and son duo have been sentenced to decades in prison and are to pay over $1 million in restitution for defrauding small businesses, the Department of Agriculture (USDA), and the Small Business Administration (SBA). After being hired to help small businesses win contracts with the USDA, father Joseph Glenn Osborne, Sr. allegedly stole over half a million dollars paid to his clients and used the money to buy himself a mansion. Father and son then conspired with others to fraudulently win contracts with the same agency for son Joseph Glenn Osborne, II's business, and were awarded five contracts worth over $4 million. After the contracts were terminated for default—and company funds were used to fund renovations for the aforementioned mansion and extravagant nights out—they attempted to fraudulently win contracts with the SBA. USAO SDCA

September 6, 2018

Newman Broadcasting, Inc. has been issued a judgment for breach of contract with the Federal Communications Commission (FCC) and will pay $910,700 to resolve a lawsuit alleging False Claims Act violations. While bidding for rights to certain radio frequencies, the Florida-based broadcasting company had falsely certified that it was eligible to receive a credit for new participants, when in fact it was not because it was partially owned and operated by an experienced industry professional. DOJ

August 7, 2018

International Marine and Industrial Applicators, LLC (IMIA) and Marine Equipment Supply, LLC (MES), two marine maintenance companies, have paid $2.8M to settle allegations that they improperly billed the Navy for rental equipment. Under the contract that the companies had with the Navy, they were not allowed to charge for rental equipment. The companies violated this provision when they charged over $1.4M for the rental of hull repair machinery. USAO Western District of Washington
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