Government Procurement Fraud

October 29, 2020

Long Island construction company VJ Associates will pay $3.13 million to resolve criminal and civil charges alleging that the company overbilled government projects, including by adding bogus time charges on government billing and adding hundreds of thousands of unnecessary costs.  The company has agreed to permanent debarment from receipt of federal funds.  The investigation was initiated by an unnamed whistleblower, who will receive 22.5% of the recovery.  USAO MA; 2021 state settlement

October 7, 2020

J&K Contracting, Inc. will pay $350,000 to the State of Maryland to settle claims that the company violated the Maryland False Claims Act.  J&K and its principal, Kryiakos Kiotsekoglou, were alleged to have made false statements that they used and paid subcontractors certified under the state’s Minority Business Enterprise Program.  In addition to the fine, defendants have agreed to a voluntary debarment from contracting with the State.  MD

September 30, 2020

Industries for the Blind and Visually Impaired, Inc., paid $1.9 million to resolve claims brought by a whistleblower under the False Claims Act alleging that the defendant, which received set-aside contracts under the federal government’s AbilityOne Program in exchange for agreeing to provide jobs to workers who are blind or visually impaired, misrepresented its employment of blind personnel.  In addition, company personnel allegedly accepted impermissible payments from manufacturers and improperly subcontracted work on government contracts to companies that did not generally use blind labor.  DOJ; USAO ED WI

September 24, 2020

California will receive $7 million in a settlement with HSBC resolving claims that the financial services company overcharged the state’s California Public Employees Retirement System (CalPERS) for foreign currency trading in violation of the California False Claims Act.  Cal

September 22, 2020

Contractors Bechtel National Inc., Bechtel Corporation, AECOM Energy & Construction, Inc., and Waste Treatment Completion Company, LLC will pay $57.75 million to resolve claims that they violated the False Claims Act by overbilling the Department of Energy for work on the Hanford Waste Treatment Plant.  The investigation was initiated by four whistleblowers who reported overcharging by defendants on craft labor performed by electricians, millwrights, pipefitters, and other skilled trades workers, including billing for unallowable and unreasonable idle time caused by management failures in scheduling work.  The whistleblowers will receive $13.75 million from the settlement.  USAO ED WA

September 17, 2020

LexisNexis Coplogic Solutions Inc. agreed to pay $10 million to Florida, which intervened in an action brought by whistleblower Christopher Hood under the Florida False Claims Act alleging that the company was underpaying the state.  LexisNexis contracted with the state to provide motor vehicle crash reports to the public for a small fee; a portion of the fee collected by LexisNexis, $10 per report, was to be paid by the company to the state Department of Highway Safety and Motor Vehicles.  However, the whistleblower and state alleged that LexisNexis systematically understated the number of reports it sold, thereby underpaying the state.  The relator, a former employee of LexisNexis, will receive a whistleblower award of $1.8 million.  Fla.  Earlier settlements