Pennsylvania-based Support of Microcomputers Associates (SOMA) has agreed to a $300,000 judgment for violating the False Claims Act and Trade Agreements Act. The Trade Agreements Act prohibits the sale of computer supplies manufactured in certain countries to some federal agencies, such as the Department of Defense. However, according to a former SOMA executive’s lawsuit, the company allegedly sold federal agencies computer supplies made in China, Vietnam, and other non-compliant countries. USAO EDPA
IBM and its subsidiary, Cúram Software, will pay $14.8 million for allegedly making material misrepresentations to the State of Maryland during a contract award process for the state’s health insurance exchange website. Cúram, which was acquired by IBM at the end of 2011, had applied for the award in 2012 and subsequently became a subcontractor on the project, which was partially funded by federal grants. However, during the application process, and with IBM’s knowledge, Cúram allegedly misrepresented the development status and existing functionality of its software, as well as its software’s ability to integrate with other software. The resulting issues caused the State of Maryland to terminate the contract and replace Cúram’s software. DOJ; USAO MD
Blowing the Whistle on Data Breaches and Cybersecurity Flaws
With increasing dependence on technology, cybersecurity has emerged as a critical issue for customers, investors, and government regulators. Data breaches and other cybersecurity incidents can have devastating effects. In 2018, the Council of Economic Advisers estimated that malicious cyber activity cost the U.S. economy up to $109 billion dollars in 2016 alone.
Typically, the public only learns of such flaws and...
The FCC disburses billions of dollars every year for its massive Universal Service Fund (USF) and its laudable mission to promote telephone and internet access to all U.S. persons regardless of income and location. This massive pot of government money attracts a commensurate measure of opportunists seeking to defraud these well-meaning programs.
Silicon Valley-based software company Informatica LLC will pay $21.57 million to resolve allegations that it provided false information about its commercial pricing and discounting practices that was then used in negotiations for Multiple Award Schedule contracts with the General Services Administration. In addition, Informatica was alleged to have caused sales to the U.S. in violation of the Trade Agreements Act. The whistleblower, a former employee of Informatica, will receive $4.3 million from the settlement. DOJ
Fraud in GSA Contracts: How to Report it Under the False Claims Act for a Whistleblower Reward
Federal government offices purchase all the products and services any office does: office supplies, telecommunications equipment and services, computer hardware and software, consulting services, vehicles, travel services, and so on. The General Services Administration is the centralized procurement arm for the federal government, overseeing tens of billions of dollars in procurement annually, as well as handling...
Last summer, we wrote about the fraud risks inherent in the massive increase in government spending for immigration detention. Almost one year later, a child’s tragic death again calls attention to failures at the immigration facilities that maintain ever increasing government contracts. On April 30, 2019, a sixteen-year-old boy died at a Southwest Key facility in Brownsville, TX, two weeks after arriving in the...
Michael S. Flynn of Bridgeport, Connecticut, pleaded guilty to charges arising from his role in rigging bids on contracts to install insulation at construction projects for universities, hospitals, and other public and private entities in Connecticut, New York, and Massachusetts. Flynn owned and ran an insulation contractor, an conspired with competitors to fix prices and submit bids that inflated customer costs by at least 10%, costing victims more than $45 million in total. Flynn faces up to 30 years in prison. DOJ
An Alaska Native Corporation that qualified for the Small Business Administration’s set aside contracts has agreed to pay $2 million to settle a whistleblower’s allegations that it paid kickbacks to obtain said contracts. According to a qui tam complaint by Susann Campbell, Kikiktagruk Inupiat Corporation (KIC), and its subsidiary, KIC Development LLC (KICD), paid bribes to a contract employee with the U.S. Army Corp of Engineers in order to obtain preferential treatment and confidential government information to ensure it won a construction contract at the military’s Ft. Bliss installation in Texas. USAO WDTX