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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:

Page 17 of 40

December 16, 2019

A Wisconsin man charged with leading a 12-year fraud scheme to win $260 million in government construction contracts intended for small businesses has been sentenced to 6.5 years in prison and ordered to forfeit assets worth almost $4 million.  Brian Ganos orchestrated the formation of three construction companies—Nuvo Construction Company, Inc., C3T, Inc., and Pagasa Construction Company, Inc.—and headed them with straw owners who qualified as disadvantaged individuals or service-disabled veterans in order to win government contracts.  USAO EDWI

Tagged in: Criminal Proceedings, Government Procurement Fraud, Set-Asides and Preferences,

December 12, 2019

For selling defective, Chinese-made products to the U.S. Department of Defense on fraudulently obtained contracts, Timothy Kelly, a California business manager for Emerson Company, has been sentenced to 2.5 years in prison.  Together with company owner Daniel Norton, who was sentenced to 8 years in prison, the two have also been ordered to pay $2.38 million in restitution, forfeit $333,000 in a bank account, and forfeit a $725,000 house in Hawaii.  USAO SDOH

Tagged in: Criminal Proceedings, Defense Contract Fraud, Government Procurement Fraud, Trade Agreements,

Blowing the Whistle on Environmental Abuse: Investigation of Kanto Kosan for Wastewater Dumping at Naval Bases in Japan

Posted  12/6/19
fleet of navy ships
Earlier this week, the Naval Criminal Investigative Service, the U.S. Navy’s law enforcement arm, announced that it was investigating contractor Kanto Kosan for allegedly dumping wastewater from warships at harbors in Navy bases in Japan. The investigation was triggered by a tip submitted to Japanese Customs. The FBI and Department of Justice have also joined the investigation. According to the Wall Street...

Tagged in: Environmental Fraud, Government Procurement Fraud, Importance of Whistleblowers, Ocean Dumping, Wildlife Fraud,

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December 4, 2019

A subcontractor providing logistical services on a U.S. Defense Logistics Agency (DLA) contract with Anham FZCO has agreed to pay $45 million to resolve criminal obstruction charges and civil False Claims Act allegations.  Anham and Unitrans International Inc. had been accused of failing to comply with contract provisions prohibiting materials used to support U.S. troops in Afghanistan from passing through Iran.  Based on a qui tam suit by whistleblowers Rory Maxwell, John Bush, and Supreme Foodservice GmbH, the two contractors also fraudulently induced contracts with DLA and the Army by falsely certifying compliance with the Iran sanctions and falsely representing the status of another project.  DOJ

Tagged in: Certifications, Contract Non-Compliance, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Whistleblower Case,

December 3, 2019

Weapons manufacturer Capco, LLC has agreed to pay over $1 million to resolve fraud allegations raised by its former quality engineer, James Cole.  According to Cole, from 2016 to 2018, the company knowingly certified that M320 grenade launchers sold to the U.S. Army were manufactured in compliance with contract specifications, when in fact a critical component had been manufactured using the wrong type of steel.  Capco also failed to disclose the issue despite conducting an internal investigation.  For bringing the issue to light, Cole will receive approximately $235,000 of the recovery. USAO CO

Tagged in: Certifications, Contract Non-Compliance, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

November 18, 2019

Daniel Norton, the owner of former DOD contractor Emerson Company, has been sentenced to 8 years in prison following his guilty plea on charges that he fraudulently obtained government contracts and obstructed justice.  According to the evidence at trial, Emerson Company had been debarred in 2011, but Norton used front companies to fraudulently secure purchase orders for parts to be supplied to the military.  In violation of contract Buy-American requirements, Norton filled the purchase orders by supplying non-conforming products manufactured in China, even where the contract called for a specific part from an American manufacturer.  In addition to his prison sentence, Norton was ordered to pay $2.4 million in restitution, and forfeit property valued at over $1 million.  USAO SD OH

Tagged in: Criminal Proceedings, Defense Contract Fraud, Government Procurement Fraud, Trade Agreements,

November 18, 2019

Computer hardware supplier Eagle Alliance will pay $110,000 to resolve a case brought by a whistleblower alleging that the company improperly double-billed the government for computer equipment, and billed for used equipment as if it were new.  Jeffrey Brenner, a former employee of Eagle Alliance, will receive $18,700 as a whistleblower reward.  USAO MD

Tagged in: Defense Contract Fraud, Falsifying Invoices, FCA Federal, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

November 13, 2019

Construction company ABS Development Corporation will pay $2.8 million, and give up $16 million in potential administrative claims, to resolve government charges that it secured a contract reserved for U.S. companies to renovate a U.S. Army shipyard in Haifa, Israel, by falsely representing that it would perform the work when, in fact, ABS knew that work would be performed by its Israeli parent company, Ashtrom International, Ltd.  After being awarded the contract, ABS submitted false claims certifiying that it was performing the work as the prime contractor even though the work was being performed by Ashtrom.  DOJ

Tagged in: Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Set-Asides and Preferences,

Korean Oil Companies - Procurement Fraud/Bid-Rigging ($363 million)

Constantine Cannon represented a whistleblower in a False Claims Act case alleging several Korean oil and transportation companies engaged in a bid-rigging scheme to artificially inflate the price the US military paid for fuel contracts for its bases in South Korea.  Ultimately, five different entities paid a total of $363 million: In November 2018, SK Energy, GS Caltex, and Hanjin Transportation agreed to pay $246 million to resolve both criminal and civil claims; and in March 2019, Hyundai Oilbank and S-Oil Corporation agreed to pay $127 million to resolve both criminal and civil claims.  The settlements represent the largest False Claims Act antitrust recovery ever.  Our client received a whistleblower award of roughly $37 million.  Read more -- WSJ, Reuters, Stars and Stripes, DOJ, CC.

Tagged in: Bribery and Bid-Rigging, FCA Federal, Government Procurement Fraud, Whistleblower Rewards,

October 24, 2019

Engineering firm CH2M Hill will pay $6.4 million to resolve claims that it billed the U.S. Air Force for work done by personnel who did not meet educational and work experience requirements set forth in a contract between the parties for environmental consulting work.  The settlement arose following CH2M's 2017 disclosure of the overbilling and repayment of $10.5 million.  Following that payment, the Air Force contended that CH2M knew about the overpayment as early as 2011, but sought to conceal the result of its internal audit, claiming privilege.  USAO WD WA

Tagged in: Defense Contract Fraud, Falsifying Invoices, Government Investigation, Government Procurement Fraud,

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