Contract Non-Compliance

January 23, 2017

Washington River Protection Solutions LLC agreed to pay $5.275 million to settle allegations it knowingly submitted false claims to the Department of Energy for overtime and premium pay and also failed to comply with the contract’s internal audit requirements in connection with work performed at DOE's Hanford Nuclear Site known as the Tank Farms.  DOJ

October 12, 2016

Massachusetts negotiated an agreement with National Grid that returns more than $1.5 million to thousands of National Grid residential gas customers who were wrongfully charged a more expensive rate. Under the agreement, National Grid will issue bill credits to more than 4,500 residential gas customers who were incorrectly charged the company’s non-heating rate instead of the less expensive heating rate. Credit amounts will be customer-specific and issued later this year. MA

Roof Systems of Maine - Procurement Fraud/Defense ($439,500)

Constantine Cannon represented a whistleblower in a False Claims Act case alleging Roof Systems of Maine violated contract requirements and industry standards in roofing and siding work done on behalf of the Army, Navy, and National Guard. In March 2016, the company agreed to pay $439,500 to settle the matter.  Our client received a whistleblower award of roughly 18% of the government's recovery.  Read more -- Central Maine, DOJ, CC.

April 18, 2016

Coloroda-based defense contractor IONU Security, Inc. agreed to pay $450,000 to settle charges of violating the False Claims Act in connection with an Army Contract for Bradley Fighting Vehicles (“Bradleys”) under which IONU provided Turret Control Drive Units (“TDCUs”) for the Bradleys under subcontracts with the Prime Contractor.  The TDCU is a control box that provides power to control the turret, including weapons systems, of a Bradley.  According to the government, the TDCUs did not meet the requirements of the contract and despite knowing that their failure could result in an electronic short and catastrophic failure, IONU did not notify the Prime Contractor or the government of the defective parts.  The allegations originated after a whistleblower notified the Department of Defense through its fraud hotline.  DOJ (WDTX)

March 24, 2016

New York announced a groundbreaking $3.1 million agreement with Focused Technologies Imaging Services, LLC (“FTIS”), its sole owner Charles “Chuck” Tobin, and its former co-owner Julie Benware, for unlawfully outsourcing government-funded work to a subcontractor based in Mumbai, India in 2008 and 2009. The outsourcing was illegal because even though FTIS was required to perform the work at a warehouse in Albany, New York, FTIS unlawfully sent personal information of over 16 million people to a foreign business that was unauthorized to receive this information. The outsourcing also resulted in the failure of FTIS to adhere to a requirement that over 50% of the labor hours of the contract be performed by individuals with disabilities. NY

March 7, 2016

Ohio-based defense contractor ArmorSource, LLC agreed to pay $3 million to settle charges of violating the False Claims Act in connection with a contract to provide combat helmets to the U.S. Army.  According to the government, ArmorSource delivered helmets to the Army that were manufactured and tested using methods that did not conform to contract requirements, that failed to meet contract performance standards and that were eventually recalled after several lots failed ballistic safety tests.  ArmorSource had subcontracted the manufacturing of the helmets to Federal Prison Industries, Inc. (FPI), which operates under the trade name UNICOR.  The allegations originated in a whistleblower lawsuit filed by FPI employees Melessa Ponzio and Sharon Clubb under the qui tam provisions of the False Claims Act.  They will receive a whistleblower award of $450,000 from the proceeds of the government's recovery.  DOJ

March 4, 2016

Constantine Cannon is pleased to announce that its client, whistleblower Brian Emery, helped the U.S. Government recover $439,500 over allegations of faulty workmanship and the use of non-compliant materials in three federal building projects in Maine.  Click here to read more.

February 29, 2016

Lockheed Martin Corporation (and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services) agreed to pay $5 million to resolve allegations they violated the Resource Conservation and Recovery Act (RCRA) and the False Claims Act by knowingly submitting false claims for payment under their contracts with the Department of Energy to operate the Paducah Gaseous Diffusion Plant in Kentucky.  According to the government, Lockheed Martin violated the RCRA, which establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste.  The government alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.  The allegations originated in two whistleblower lawsuits filed under the qui tam provision of the False Claims Act by the Natural Resources Defense Council and several former employees of Lockheed Martin who worked at the Paducah facility.  The whistleblowers will collectively receive a whistleblower award of $920,000 from the proceeds of the government's recovery.  DOJ