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Government Procurement Fraud

This archive displays posts tagged as relevant to fraud in government contracting and procurement. You may also be interested in the following pages:

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POGO Reveals Possible “Unholy Alliance” Between ADS, Inc. and the Pentagon

Posted  02/26/21
Business sign saying "Come In We're Open" in white on blue background
As small businesses throughout the United States struggle to survive the economic devastation caused by the COVID-19 pandemic, one company claiming to be a small business but with hundreds of employees and more than $3 billion in annual sales, as well as a long history of fraud allegations and settlements, continues to reap huge rewards from government contracts.  The company—Atlantic Diving Supply, Inc. (ADS)—is...

February 26, 2021

United Airlines will pay a total of $49 million to resolve criminal and civil claims that its cargo division fraudulently overcharged the U.S. Postal Service under International Commercial Air (ICAIR) contracts by which United transported U.S. mail internationally.  While the contracts required United to bill the government based on the delivery of mail receptacles, as supported by departure and arrival scans of the receptacles, United submitted false data that was not based on actual scans or the movement of mail, and United employees who knew about the false data and billings took steps to conceal this information.  To resolve the criminal claims, United will pay $17.3 million in penalties and enter into a non-prosecution agreement including specific compliance and reporting requirements; to resolve civil claims under the False Claims Act, United will pay $32.2 million.  DOJ

Catches of the Week: Contractors Abroad Face Liability for Fraud in U.S. Government Contracts

Posted  02/19/21
fleet of navy ships
This week, we double up on the Catch of the Week, and highlight two actions involving foreign contractors doing business with the U.S. Navy.

French Concrete Contractor Pays $14.5 Million to Resolve Claims of Delivering Substandard Concrete for U.S. Navy Bases in Africa

In the first case, Colas Djibouti, a subsidiary of French contractor Colas, agreed to pay $12.5m to the U.S. government to settle criminal charges,...

February 19, 2020

Information Innovators Inc. (Triple I), a federal technology contractor in Virginia, has agreed to pay over $6 million to settle claims that a predecessor company knowingly overbilled the Department of Homeland Security (DHS) on an Enterprise Acquisition Gateway for Leading Edge Solutions Contract (EAGLE contract) from 2007 to 2014.  The alleged False Claims Act violations by Creative Computing Solutions Inc. (CCSi) involved billing DHS for work performed by under-qualified CCSi employees at rates reserved for more qualified employees.  DOJ; USAO MD

Constantine Cannon continues its commitment to ending abuses in private detention facilities

Posted  02/17/21
wired fence with building in background
This week, Constantine Cannon is proud to continue its representation as pro bono counsel to Immigrant Legal Resource Center, Human Rights Watch, and Freedom for Immigrants in supporting California’s efforts to end the use of private immigration detention facilities in the state.  Last spring, we filed a “friend of the court” brief for these same organizations in the district court in opposition to the Geo...

February 17, 2021

French contractor COLAS Djibouti SARL will pay a total of $14.5 million to resolve claims that it supplied substandard concrete under a contract with the U.S. Navy for construction of Navy airfields in the Republic of Djibouti.  Colas Djibouti was required to certify that concrete supplied met contractual specifications for composition and characteristics, but made fraudulent misrepresentations and created fictitious testing results regarding the concrete’s composition and characteristics.  Defendant entered into a deferred prosecution agreement on criminal claims, paying $12.5 million ($10 million in forfeiture and restitution, and $2.5 million as a criminal penalty).  Defendant also entered into a civil settlement for  $3.9 million, receiving a credit of $1.96 million for its payment under the DPA.  DOJ; USAO SD Cal

DOJ Reports Decline in Total Fraud Recoveries in 2020, but Whistleblower Efforts and Rewards Continue

Posted  01/14/21
Department of Justice building entrance
In its annual report of recoveries in fraud and False Claims Act cases, the Department of Justice reported total recoveries of $2.2 billion for the fiscal year ending September 2020.  These recoveries represent the lowest reported DOJ recoveries since 2008. While it is the decline in recoveries that stands out, the 2020 DOJ fraud statistics do share some things in common with prior years.  First, whistleblowers...

January 11, 2021

Defense contractor Raytheon Technologies Corporation and its subsidiary, Hamilton Sundstrand Corporation, have agreed to pay over $515,000 to settle allegations of submitting false claims for payment.  Between 2006 and 2015, Raytheon and Hamilton improperly certified that goods it sold either directly to the government or to suppliers selling to the government were of domestic origin, when in fact they were manufactured in Romania.  The false certifications violated the contracts’ domestic-preference requirements, the Buy American Act of 1933, and the False Claims Act.  USAO CT

Top Ten State Healthcare and Financial Fraud Recoveries of 2020

Posted  01/8/21
person raising the U.S. flag
State and local governments are on the front lines of enforcing anti-fraud laws and play a critical role in ensuring that businesses and individuals are held accountable.  Whistleblowers with information about corporate misconduct involving healthcare, government procurement, financial regulation, and tax may find that state proceedings offer them the best option. More than 30 states have False Claims Acts that...

January 4, 2021

Georgia-based ready-mix concrete company Argos USA LLC entered into a settlement admitting that between 2010 and 2016 it conspired to fix prices, rig bids, and allocate the market for ready-mix concrete in Georgia and elsewhere.  As part of a deferred prosecution agreement, Argos will pay a $20 million criminal penalty, institute a compliance program, and cooperate in ongoing investigations.  The unlawful actions included coordinated issuance of price-increase letters, the allocation of specific ready-mix jobs in the coastal Georgia area, the imposition of fuel surcharges and environmental fees, and the submission of bids at collusive and noncompetitive prices.  DOJ
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