Contact

Click here for a confidential contact or call:

1-212-350-2774

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:

Page 10 of 16

August 3, 2018

A former subcontractor, Andrew Nolan, has pleaded guilty to falsifying quality testing results for the concrete used on the Dulles Metrorail Project. The actual results would have caused the concrete to be rejected in the project, which is partially funded by the Department of Transportation. Nolan is being prosecuted under both the federal False Claims Act and the Virginia Fraud Against Taxpayers Act and faces a maximum of five years in prison. USAO EDVA

August 3, 2018

J.W. Ancel, Inc. has paid $145,000 to settle allegations that, in the course of constructing a bus facility and building for the Maryland Transit Administration, it billed excessively for work that wasn’t covered in the contract or expressly approved. The case was prosecuted under the Maryland False Claims Act, which was passed only two years before the alleged fraud began in 2013. MD AG

July 26, 2018

3M Company has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended Combat Arms Earplugs, Version 2 (CAEv2) to the US military without disclosing defects that hampered the effectiveness of the hearing protection device.  As part of the settlement, the whistleblower who initiated the lawsuit will receive $1,911,000. DOJ

July 26, 2018

Sorensen Gross Construction Company (Sorensen) and its corporate vice president, Khalil Saab, have agreed to pay $2.481 million to resolve allegations that they submitted false claims for payment under a construction contract funded by USAID. Sorensen allegedly subcontracted almost all of the work on a project to build or renovate 16 schools in Aqaba, Jordan to a local Jordanian company, Concorde, in violation of its contract with USAID. DOJ

July 6, 2018

Kansas man Gary Duff was sentenced to 18 months in prison for defrauding the State Department in connection with $1.47 million in contracts.  Duff admitted in his plea that he concealed conflicts of interest underlying his successful bids for the contracts.  His co-conspirator was previously sentenced to 15 months imprisonment for steering the contracts to Duff.  DOJ

June 27, 2018

John J. Palie Jr. and his son John J. Palie III both pled guilty to fraud charges related to titanium sold to a Connecticut defense contractor. The two admitted to misrepresenting the source and quality of the titanium they sold to a company that produces aircraft engines including for U.S. Air Force fighter jets. The victim company faced $1,328,000 in losses for the fraudulent misrepresentation. USAO DCT

June 26, 2018

Alter Stesel, also known by various alias, and his company A1 4 Electronics Inc. were placed in debarment status by the Department of Homeland Security (“DHS”) for providing counterfeit goods and failing to perform on contracts with DHS. Stesel then continually created new companies to falsely certify that to the government that he was not under debarment status and received approximately 45 contracts with his two new companies worth over $300,000 while on debarment. Stesel pleaded guilty to six counts of wire fraud. USAO EDVA

April 3, 2018

Norwegian NGO Norwegian People’s Aid, which receives funding from the US Agency for International Development, agreed to pay $2 million to settle claims it violated the False Claims Act by providing material support to Iran, Hamas, the Popular Front for the Liberation of Palestine (“PFLP”), and the Democratic Front for the Liberation of Palestine (“DFLP”), contrary to federal funding requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. DOJ (SDNY)

March 15, 2018

Japanese-based Toyobo Co. Ltd. and its American subsidiary Toyobo U.S.A. Inc. agreed to pay $66 million to resolve claims they violated the False Claims Act for selling defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies. According to the government, Toyobo knew that Zylon degraded quickly in normal heat and humidity, and that this degradation rendered bullet proof vests containing Zylon unfit for use. But Toyobo nonetheless actively marketed Zylon fiber for bullet proof vests, published misleading degradation data that understated the degradation problem. The settlement is part of a larger investigation of the body armor industry’s use of Zylon in which the government previously recovered more than $66 million from 16 entities involved in the manufacture, distribution or sale of Zylon vests. The allegations surrounding this settlement originated under the whistleblower provisions of the False Claims Act by law enforcement officer Dr. Aaron Westrick, who is now a Criminal Justice professor at Lake Superior University. He will receive a whistleblower award of $5,775,000 from the proceeds of the government's recovery. DOJ
1 8 9 10 11 12 16