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:
May 18, 2022
Seven companies in South Korea have agreed to a joint settlement of $3.1 million to resolve allegations that they conspired to suppress and eliminate competition in bidding on 15 contracts for construction and engineering work on U.S. military bases in South Korea awarded by the U.S. Army Corps of Engineers between 2016 and 2019. The government alleged that as a result of the bid-rigging by the companies, Korea Engineering Consultants Corporation, Yul Lim Construction Co. Ltd., Shin Woo Construction & Industrial Co. Ltd., Seongbo Const. Ind. Co. Ltd., Wooseok Construction Co. Ltd., Yuil Engineering and Construction Co., and Seokwang Development Co. Ltd., the government paid substantially more for services performed under the contracts than it otherwise would have. DOJApril 29, 2022
KCF Technologies, Inc., will pay the United States $1,226,436.14 for False Claims Act violations. KCF engaged in procurement fraud by billing labor time spent on commercial contracts improperly to DOD contracts it had with the Department of the Navy and the Department of the Army between 2016 and 2019. MDPAMarch 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 14, 2022
Freight carriers YRC Freight Inc., Roadway Express Inc., and Yellow Transportation Inc. will pay $6.85 million to resolve government claims that they knowingly overcharged the Department of Defense on military freight shipments. Whistleblower James Hannum, a Yellow Transportation employee, filed a qui tam action alleging that the companies had a practice of re-weighing shipments and, when the reweighs showed an increase from the original weight, defendants charged DOD for these higher weights, but when the reweighs showed a decrease from the original weight, defendants allegedly concealed the lower weight and instead charged DOD for the original, inflated weights. Hannum will receive a whistleblower award of approximately $1.3 million. DOJJanuary 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
