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:
December 3, 2019
Weapons manufacturer Capco, LLC has agreed to pay over $1 million to resolve fraud allegations raised by its former quality engineer, James Cole. According to Cole, from 2016 to 2018, the company knowingly certified that M320 grenade launchers sold to the U.S. Army were manufactured in compliance with contract specifications, when in fact a critical component had been manufactured using the wrong type of steel. Capco also failed to disclose the issue despite conducting an internal investigation. For bringing the issue to light, Cole will receive approximately $235,000 of the recovery. USAO COUnitrans/Anham - Procurement Fraud/Defense ($45 million)
Constantine Cannon represented multiple whistleblowers in a False Claims Act case alleging Unitrans International and Anham FZCO violated the US sanctions regime against Iran in securing military contracts to provide food and transportation to US troops. In December 2019, Unitrans agreed to pay $45 million to resolve criminal and civil charges relating to the matter. Our clients received a whistleblower award of 28.5% of the government's civil recovery. Read more -- Washington Post, DOJ, CC.September 13, 2019
United Parcel Service will pay $8.4 million to resolve allegations that it overcharged federal agencies purchasing UPS ground delivery services under a General Services Administration Multiple Award Schedule contract by failing to adhere to the contract's Price Reductions Clause. UPS was alleged to have offered lower prices to other customers without offering those same prices to the U.S., resulting in the government overpaying for package deliveries. DOJSeptember 5, 2019
The owner of two defense contracting firms, Tico Manufacturing Inc. (TICO) and Military and Commercial Spares Inc. (MCS), has been sentenced to 3 years in prison and ordered to pay $8 million in restitution for conspiring to defraud the Department of Defense. Between 2011 and 2015, Roger Sobrado fraudulently obtained DoD contracts by claiming that conforming parts for critical military equipment, including fighter jets and helicopters, would be supplied through authorized manufacturers. Instead, Sobrado supplied non-conforming parts through non-authorized manufacturers, recruited family members to commit the same fraud, and collected DoD payments from his family members. Additionally, he failed to report almost half of his taxable income for three years, causing the United States to lose a total of $509,962. USAO NJCatch of the Week — American Airlines Required to Pay Over $22 Million for Falsely Reporting Delivery Times
Posted 08/23/19
August 20, 2019
American Airlines, Inc. will pay $22.1 million to resolve claims that it falsely reported contract performance times in a contract between the airline and the United States Postal Service. The contract required American Airlines to take possession of U.S. mail receptacles at domestic locations as well as international locations of the Department of Defense and State Department, and report the time the receptacles were delivered at specified locations by submitting an electronic scan. American Airlines was alleged to have falsified delivery information, thereby concealing contractual non-compliance and avoiding penalties for late delivery. DOJAugust 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
