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:
March 21, 2022
United Parcel Service Inc. (UPS) has agreed to pay $5.3 million to resolve its potential liability under the False Claims Act. Under a contract with USPS to deliver mail for various Department of Defense and State Department locations domestically and internationally, UPS was required to submit confirmation of delivery and delivery times to USPS. However, the company allegedly reported false information. DOJMarch 17, 2022
Reveal Global Consulting, LLC has agreed to pay $820,000 to resolve allegations of improperly billing the Defense Intelligence Agency. Per contract terms, Reveal was only supposed to bill for time and materials expended to fulfill contractual obligations; however, the firm allegedly continued to bill the standard amount even for months when fewer than promised employees were devoted to the contract. Additionally, Reveal allegedly submitted bills with inflated and misstated work by subcontractors, and bills for work by employees who had already left the company. USAO EDPAMarch 8, 2022
Comprehensive Health Services LLC (CHS), a Florida-based contractor that provides medical services at government facilities in Iraq and Afghanistan, has agreed to pay $930,000 to resolve claims under the False Claims Act. According to two separate qui tam cases filed in the Eastern District of New York, CHS falsely certified to the State Department and Air Force that it had complied with contractual cybersecurity requirements when, in fact, it had failed to to properly store patient medical records on a secure electronic medical record system, and had falsely represented that it used approved medical supplies when, in fact, it had relied on unapproved controlled substances from foreign sources. DOJ; USAO EDNY; USAO MDFLFebruary 11, 2022
Transportation company Academy Bus, LLC, together with related entities and individuals, will pay $20.5 million to resolve claims brought in a whistleblower lawsuit under New Jersey’s False Claims Act that the defendants defrauded New Jersey Transit, for whom defendants operated bus routes. Defendants were paid by NJ Transit based, in part, on miles and hours driven, with deductions for missed bus trips; they were alleged to have over-reported miles and hours driven, and underreported their missed bus trips to the state. The settlement also required Academy to implement specific compliance procedures. The whistleblower, former Academy employee Hector Peralta, will receive an award totaling $3.9 million. NJJanuary 12, 2022
Idaho-based Native American Services Corp. (NASCO) and Texas-based Mirador Enterprises, Inc. (Mirador) have agreed to pay $750,000 and $400,000 respectively, for a combined settlement of $1.15 million, to resolve allegations of fraudulently obtaining two construction contracts at Colorado’s Fort Carson Army installation. According to the DOJ, one contract was set aside for eligible economically and socially disadvantaged small businesses, and the other was set aside for eligible small businesses. Although Mirador was eligible for both contracts, it allowed its mentor NASCO to take on the primary role in the performance of the contracts; both companies then took steps to conceal the fraud. USAO COJanuary 6, 2022
SoNo International LLC and Ark Capital Equipment LLC have agreed to pay $904,000 to resolve allegations of supplying the Department of Defense with shipping containers that were made in China or made of Chinese steel, in violation of contracts as well as the False Claims Act. As part of the settlement, the two companies will also submit to enhanced training and reporting requirements pursuant to an administrative agreement with the Defense Logistics Agency. An unnamed third-party company, which SoNo and Ark hired to change identifying plates on the shipping containers, has separately agreed to train employees on customs rules and regulations. USAO EDPACatch of the Week: Privatized Military Housing Contractor Pays Over $65 Million to Resolve Criminal and False Claims Act Allegations
Posted 12/23/21
