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:
September 26, 2019
A military contractor who previously plead guilty to accepting illegal kickbacks and committing wire fraud has been sentenced to over 2 years in prison and ordered to pay $1.4 million in restitution. Despite being the true owner of Walsh Construction Services, LLC, James Conway concealed his ownership by signing contracts under Keith Walsh, a fictitious name. He then used Walsh Construction to bill for $1.4 million of work the contractor purportedly performed at Picatinny Arsenal and Joint Base McGuire-Dix-Lakehurst, as well as collect on $180,345 of kickbacks from four subcontractors. In addition to the prison term and restitution order, Conway was sentenced to three years of supervised release. USAO NJSeptember 13, 2019
Defense contractor GS Engineering, Inc. agreed to pay $1 million to resolve allegations of double-billing federal defense agencies for certain data acquisition equipment. GS Engineering allegedly depreciated the equipment and both charged the government for the cost of the depreciation and leased that same equipment back to the government through a related company. The settlement required GS Engineering to enter into an agreement with the United States Army to hire and maintain a compliance program for government contracting. In addition, its president and four other companies agreed to be excluded from federal contracts for three years. 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 NJSeptember 4, 2019
Defense contractor Arkin Industries has agreed to return $2.6 million in overpayments to the Department of Defense, Air Force, and Navy, after self-disclosing that it had detecting an error in its accounting system that double-billed worker hours. The designer, tester, and manufacturer of aircraft and helicopter parts cooperated with an independent investigation by the United States, which determined that the overbilling was accidental. USAO EDNYAugust 20, 2019
Luke Hillier, the majority owner and former CEO of defense contractor ADS, Inc., will pay $20 million to resolve claims that he caused the submission of false claims to the government by fraudulently representing that the company qualified as a small business concern eligible for federal contracts reserved for such businesses. In 2017, ADS and another company officer paid $16 million to resolve claims from the same conduct, bringing the government's total recovery to over $36 million. The case was initiated by a whistleblower complaint filed by Ameliorate Partners, LLP, which will receive $3.6 million of the Hillier settlement. DOJAugust 9, 2019
Military contractor Mission1st Group Inc has agreed to pay $4 million to settle allegations that it billed the United States for hazard pay add-ons to its employee salaries, but then did not actually pay the billed “uplifts” to its employees. USAO NJJuly 25, 2019
California-based telecommunications company Silvus Technologies, Inc., will pay $436,000 to resolve claims under the False Claims Act that the company overcharged the Air Force on three separate cost-based contracts. The company was alleged to have included unallowable costs and improperly charged employee costs to the contracts. The overcharges resulted from internal controls that the government described as inadequate to accurately track direct and indirect costs. USAO N.D.N.Y.ITT Cannon Pays $11M to Settle Whistleblower Claims of Government Contracting Fraud
Posted 07/18/19
