Contract Non-Compliance

September 28, 2017

Vermont-based contractor J.A. McDonald, Inc., and its owner and president Eric Boyden, agreed to pay $270,000 to resolve allegations that JAM violated the False Claims Act by causing the State of Vermont to present false claims for payment to the United States in connection with the federally-funded construction of a two-span bridge on Vermont Route 116 in Bristol, Vermont.  Specifically, the settlement resolves allegations that JAM employees intentionally altered critical bridge components such that the bridge no longer conformed to specified safety standards, and that JAM employees took affirmative steps to conceal the alterations from the Vermont Agency of Transportation. DOJ (DVT)

September 18, 2017

The Alaska Department of Health and Social Services agreed to pay roughly $2.5 million to resolve allegations it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program.  According to the government, ADHSS contracted with Julie Osnes Consulting LLC to provide advice and recommendations designed to lower its SNAP quality control error rate and the company’s recommendations, as implemented by ADHSS, injected bias into ADHSS’s quality control process and resulted in ADHSS submitting inaccurate quality control data and information to USDA and receiving performance bonuses that it should not have received. DOJ

September 13, 2017

Virginia-based contractor Pacific Architects and Engineers, LLC agreed to pay $5 million to settle charges of violating the False Claims Act by failing to follow vetting requirements for personnel working in Afghanistan under a State Department contract for labor services.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former PAE manager Robert J. Palombo.  Mr. Palombo will receive a whistleblower award of $875,000 from the proceeds of the government's recovery. DOJ (DDC)

May 31, 2017

Massachusetts-based eClinicalWorks, one of the country's largest vendors of electronic health records software, along with certain of its employees, agreed to pay $155 million to resolve charges the company violated the False Claims Act by misrepresenting the capabilities of its software.  The company also allegedly paid kickbacks to certain customers in exchange for promoting its product.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Brendan Delaney, a software technician formerly employed by the New York City Division of Health Care Access and Improvement.  He will receive a whistleblower award of roughly $30 million from the proceeds of the government's recovery. DOJ

April 24, 2017

Georgia-based Energy & Process Corporation agreed to pay $4.6 million to settle charges of violating the False Claims Act by failing to perform required quality assurance procedures and for supplying defective steel reinforcing bars in connection with a contract to construct a Department of Energy nuclear waste treatment facility. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Deborah Cook, a former employee of the prime contractor that subcontracted with E&P in the course of building the DOE facility. She will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ

March 10, 2017

New York based information technology management software company CA Inc. agreed to pay $45 million to resolve allegations it violated the False Claims Act by making false claims in the negotiation and administration of a General Services Administration contract.  According to the government, CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated and also violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.  The allegations originated a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD.  Shemesh will receive a whistleblower award of roughly $10.2 million from the proceeds of the government's recovery. DOJ

February 9, 2017

General Production Service of California, Inc. agreed to pay $300,000 to settle charges of violating the False Claims Act by failing to pay money owed on oil produced from a federal lease.  DOJ (DCO)