Defense Contract Fraud
This archive displays posts tagged as relevant to fraud in defense and military contracts. You may also be interested in the following pages:
June 30, 2016
SRA International Inc., Galaxy Scientific Corp. (GSC), Galaxy Technology LLC, and Engineering Integrated Services L.L.C. agreed to pay roughly $1.1 million to resolve allegations they violated the False Claims Act through GSC's use of shell affiliates to improperly induce the government to fund and award task orders, disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit with respect to certain military contract. The allegations originated in a whistleblower lawsuit filed by former GSC contracting officer John Carr under the qui tam provisions of the False Claims Act. He will receive a whistleblower award of roughly $250,000 from the proceeds of the government's recovery. DOJ (DNJ)June 1, 2016
San-Diego-based Harper Construction Company, Inc. paid $5.4 million to resolve allegations it violated the False Claims Act by fraudulently billing the government for work on multiple projects on military bases through the use of sham small disadvantaged businesses. The settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune. According to the government, Harper claimed it met the contract requirement that it subcontract a certain percentage of work to small disadvantaged businesses when in fact it subcontracted with sham small disadvantaged businesses. Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation. The allegations originated in a whistleblower lawsuit filed by Rickey Howard, a former employee of Harper subcontractor Frazier Masonry Corporation, under the qui tam provisions of the False Claims Act. Mr. Howard will receive a whistleblower award of $1,485,000 from the proceeds of the government's recovery. DOJ (SDCA)May 6, 2016
England-based Hesco Bastion Limited agreed to pay $2.1 million to resolve allegations it violated the False Claims Act by overcharging the government on the international transportation of blast walls Hesco manufactured and sold to the U.S. government. Hesco contracted with the Department of Defense to provide blast walls, also known as Concertainer Units, and to ship them from England to a U.S. military base in Germany. According to the government, Hesco charged the government a fixed price of £650 per truckload, while paying its transportation subcontractor less than £650 per truckload, which the government contends violated the parties’ contracts. The government further alleged that Hesco knowingly provided the government false information concerning the amount that Hesco had been paying to its transportation subcontractor and that Hesco misled the government by submitting 47 false invoices that were made to appear to be authentic invoices from the transportation subcontractor. DOJ (EDPA)April 29, 2016
U.S. Navy Captain Select Michael Vannak Khem Misiewicz was sentenced to 78 months in prison and ordered to pay a fine of $100,000 (and forfeit $95,000 in illicit proceeds) for bribery charges, admitting that he accepted cash, gifts, travel expenses, entertainment and the services of prostitutes from foreign defense contractor Glenn Defense Marine Asia in exchange for classified U.S. Navy information. The information included ship schedules that contained information related to the U.S. Navy’s ballistic missile defense operations in the Pacific. To date, 10 individuals have been charged in connection with this scheme, nine of which have pleaded guilty. DOJApril 27, 2016
Bering Straits Technical Services and its parent company Bering Straits Native Corporation agreed to pay $2 million to settle charges of violating the False Claims Act through their submission of false claims to the Department of Defense and/or the Defense Logistics Agency (DLA) for maintenance facility services provided at the Red River Army Depot located near Texarkana. Specifically, the government charged the companies submitted false preventative maintenance reports for maintenance that was not performed and false repair work orders. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ (SDNY)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)In Their Own Words — Flores
Posted 04/19/16
-- "This settlement highlights the Federal Government's continuing resolve to ensure those who defraud the Department of Defense, especially those that put the safety of our men and women serving in the military at risk . . ., are held accountable for their actions."
Defense Criminal Investigative Service Special Agent Janice M. Flores, in announcing the agreement by Colorado defense contractor to settle charges of...DOJ Catch of the Week -- Kilgore Flares
Posted 04/1/16
By the C|C Whistleblower Lawyer Team
This week's Department of Justice "Catch of the Week" goes to Tennessee-based defense contractor Kilgore Flares Company. On Monday, the company and one of its subcontractors, New York-based ESM Group Inc., agreed to pay $8 million to resolve charges they violated the False Claims Act by selling defective infrared countermeasure flares to the U.S. Army and, for ESM, knowingly...