Falsifying Invoices

August 12, 2016

Massachusetts-based research and development company Agiltron, Inc. and its president, Jing Zhao, agreed to pay $2.25 million to resolve allegations that they violated the False Claims Act by seeking disbursements from federal agencies for falsified labor costs in order to maximize charges to grants and contracts awarded by federal agencies.  Agiltron received funds under 15 grants and contracts awarded through the federal Small Business Innovation and Small Business Technology Transfer programs.  According to the government, Agiltron and Zhao engaged in a scheme in which they directed employees to charge labor hours to the awards that did not correspond with their actual time and effort, to alter their completed timesheets, and to discard or destroy documents.  DOJ (DMA)

May 3, 2016

Menlo Worldwide Services and Estes Forwarding Worldwide agreed to collectively pay $13 million to resolve allegations that they violated the False Claims Act by overcharging the government by billing for the cost of moving freight by air when it was actually shipped by ground.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a whistleblower award of $2.86 million from the proceeds of the government’s recovery.  Whistleblower Insider

March 1, 2016

Connecticut-based construction company URS Corporation agreed to pay $580,000 to resolve allegations it violated the False Claims Act by overbilling the government on a bridge reconstruction project funded by the National Railroad Passenger Corporation (Amtrak).  It allegedly did so by charging the maximum labor rates listed on the contract rather than the actual labor rates.  DOJ (CT)

February 1, 2016

Florida-based military contractor Centerra Services International Inc. (formerly known as Wackenhut Services) agreed to pay $7.4 million to resolve allegations it violated the False Claims Act by double billing and inflating labor costs on its firefighting and fire protection services contract with the Army in Iraq.  According to the government, Wackenhut inflated its labor costs by billing the salaries of certain managers as direct costs when those salaries had already been charged as indirect costs.  The government further charged that Wackenhut artificially inflated its labor rate by counting its costs for holidays, vacation, sick leave, rest and recuperation and other variable labor costs twice in calculating the rate.  The allegations first arose in a whistleblower lawsuit filed by Gary W. Reno under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of $1,332,000 as his share from the government’s recovery.  Whistleblower Insider

December 10, 2015

Tishman Construction Corporation agreed to pay more than $20 million to settle charges of overbilling customers over a ten-year period.  Starting from at least 1999, Tishman Construction allegedly billed clients for large construction projects for hours never worked or for rates not agreed upon.  Tishman Construction carried out the scheme by, among other things, padding hours of unworked or unnecessary “guaranteed” overtime; and submitting time for certain foremen who were actually absent for sick days, major holidays and vacation days.  The government claims the company also billed clients at wage rates that exceeded those specified in the governing contracts.  Whistleblower Insider

December 1, 2015

DRS Technical Services, Inc. agreed to pay $1 million to settle charges it violated the False Claims Act by overcharging on three U.S. Army contracts for work in Kuwait, where 15 DRS TSI employees were directed to record more time for labor hours than was actually being worked.  DRS TSI made a voluntary disclosure to the government under the Contractor Business Ethics Compliance Program and Disclosure Rule (also known as the Federal Acquisition Regulations Mandatory Disclosure Rule) after the company discovered the improper conduct through its internal compliance program.  DOJ (EDVA)

October 14, 2015

Chicago-based aerospace and defense industry giant Boeing Company agreed to pay $18 million to settle charges it violated the False Claims Act by submitting false claims for labor charges on maintenance contracts with the US Air Force.  The allegations originated in a whistleblower lawsuit brought by former Boeing employee James Thomas Webb under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of roughly $3 million from the government’s recovery.  Whistleblower Insider

September 28, 2015

L-3 Communications Corporation and its affiliated entities Vertex Aerospace LLC and L-3 Communications Integrated Systems LP agreed to pay $4.63 million to resolve allegations they violated the False Claims Act by inflating labor hours for time spent by independent contractors at the military’s Continental US Replacement Centers (CRCs) in Fort Benning, Georgia and Fort Bliss, Texas.  According to the government, L-3 knowingly overcharged the government for time their independent contractors spent at the CRCs by billing for each individual not based on the actual time that individual spent at the CRC, but based instead on the earliest arrival or latest departure time of any other individual who also processed through the center that same day.  The allegations first arose in a whistleblower lawsuit filed by former L-3 independent contractor Robert A. Martin under the qui tam provisions of the False Claims Act.  Mr. Martin will receive a whistleblower award of $798,675.  Whistleblower Insider