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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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August 15, 2019

ManTech Advanced Systems International, Inc., a subcontractor on a project with the Environmental Protection Agency, will pay $750,000 to resolve allegations that a project manager required to have top secret clearance had his clearance revoked during the term of the contract.  In addition, when the contract was extended, ManTech again represented that the project manager had top secret clearance.  Despite the revoked clearance, ManTech billed the EPA over $325,000 for the individual's services.  USAO ED VA.

Tech Whistleblowers Needed: Inquire Within

Posted  08/16/19
Facebook, Google, Samsung, Microsoft – we rely on large tech companies to safeguard our privacy and time and again they let us down. Yet tech companies are known to be highly selective employers, hiring the best and brightest and often paying better than companies in other industries. So how is it that they remain vulnerable to data breaches with such talent at their disposal? Cisco whistleblower James Glenn has...

Constantine Cannon Client’s Historic False Claims Act Settlement Against Cisco for Cybersecurity Fraud Makes Headlines

Posted  08/9/19
Numbers One and Zero for Coding with Word Hacked
If you’ve ever seen a heist movie, you likely know the scene. The technology-savvy member of a motley crew of criminals is huddled in a van or in a secret lair, surrounded by monitors. After a tense few minutes of maniacal typing, he or she yells “I’m in!” and hacks into the video surveillance system of the target hotel/casino/museum. In an instant, the cameras switch off or go to a pre-taped reel, and the...

August 5, 2019

Nagan Construction, Inc. of New York has agreed to pay $435,000 to resolve a civil fraud suit filed by an unnamed whistleblower, alleging that Nagan underpaid 20 employees working on two projects for the U.S. Merchant Marine Academy and the Department of Labor.  Nagan also allegedly violated the False Claims Act and the Davis-Bacon Act by misclassifying the skilled workers as unskilled workers in required certifications to the government.  As part of the settlement, $242,376 will be distributed to current and former employees.  USAO SDNY

Cisco Systems, Inc. – Government Contract Fraud/Non-Conforming Product ($8.6 million)

Constantine Cannon represented whistleblower James Glenn against Cisco in the first cybersecurity whistleblower case ever successfully resolved under the False Claims Act. Cisco Systems, Inc. agreed to an $8.6 million settlement to resolve allegations it knowingly sold vulnerable video surveillance software to federal, state and local government agencies, exposing government systems to the risk of unauthorized access and the manipulation of vital information. The whistleblower, who worked in Europe for a Cisco partner, had reported critical security vulnerabilities in the software to Cisco, but Cisco had continued to sell the technology to government entities, including the District of Columbia and 15 states, despite the fact that the software failed to comply with FAR procurement standards that require basic cybersecurity controls, including those set forth by the National Institute of Standards and Technology.  Read more: Press Release; Whistleblower Insider

Cisco Whistleblower Represented by Constantine Cannon Wins First-Ever False Claims Act Settlement for Cybersecurity Fraud

Posted  07/31/19
Cisco company sign
In the first cybersecurity whistleblower case ever successfully litigated under the False Claims Act, Cisco Systems, Inc. has agreed to an $8.6 million settlement to resolve allegations it knowingly sold vulnerable video surveillance software to federal, state and local government agencies, exposing government systems to the risk of unauthorized access and the manipulation of vital information. This qui tam...

ITT Cannon Pays $11M to Settle Whistleblower Claims of Government Contracting Fraud

Posted  07/18/19
electrical connectors scattered around
On Tuesday, the Department of Justice announced that defense contractor ITT Cannon will pay $11 million to settle allegations it violated the False Claims Act by supplying electrical connectors to the military that had not been properly tested. The company sold the untested connectors to the government directly and through distributors and other government contractors. See DOJ Press Release. According to the...

July 16, 2019

A government contractor has agreed to pay $11 million to settle False Claims allegations of directly and indirectly supplying improperly tested electrical connectors to the U.S. military.  According to Ralph Tatgenhorst, a former regional quality manager for ITT Cannon, the company repeatedly failed to test six different models of connectors even after the government learned of the failure, and even after the company promised it would conduct remedial testing.  For coming forward with a successful qui tam case, Tatgenhorst will receive a relator’s share of $2 million.  DOJ; USAO CDCA

July 2, 2019

To settle a qui tam suit by a former employee, LexisNexis Risk Solutions and its affiliates have agreed to pay $5.8 million to resolve their liability under the Illinois, Massachusetts, New Jersey, New York, and Tennessee False Claims Acts.  LexisNexis had signed a contract with law enforcement agencies to access automobile crash reports that they then sold to individuals, insurance companies, and law firms for claims adjustment purposes.  According to the contract, LexisNexis would pay the agencies each time a report was sold; however, it allegedly paid the agencies for the first report only but not for each subsequent report.  AG IL; AG NJ; AG NY

June 20, 2019

Two defense supply companies and their owners have agreed to a $159,390 consent judgment for improperly substituting parts intended for DOD contracts.  Liberty Air Parts, Inc., US Supply Corporation, and their operators, George and Ellen Onorato, allegedly agreed to supply brand new parts bolts, knobs, rings, and rivets, but instead substituted them with surplus parts left over from other government project.  They concealed the substitution by allegedly falsifying records and statements, in violation of the False Claims Act, and used the ability to quote prices lower than their competitors to their advantage in the contract bidding process.  As part of the consent judgment, the defendants are now prohibited from contracting with the federal government.  USAO EDPA
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