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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 18 of 40

October 23, 2019

New York contractors Upstate Construction Services, LLC and Structural Associates, Inc. will pay more than $1 million to resolve allegations that they formed an undisclosed joint venture in order to qualify for and obtain bonding and contracts set aside for small businesses located in HUBZones.  Although Upstate qualified as a HUBZone entity, Structural did not, and had Structural's share of Upstate's profits been disclosed, Upstate would not have been awarded the millions of dollars in contracts at issue.  USAO NDNY

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

Amazon Feels the Force

Posted  10/17/19
Birds-Eye-View of Pentagon Building
It’s a reoccurring joke that our government services are a little behind on technological times.  President Obama’s staff famously panicked in 2008 when confronted with the outdated state of White House technology.  Although some things have improved in the last decade, the federal government still remains slow to adapt to technological change. The Pentagon is now trying to get on board with the...

Tagged in: Defense Contract Fraud, FCA Federal, Government Procurement Fraud,

Read More

Unitrans/Anham - Procurement Fraud/Defense ($45 million)

Constantine Cannon represented multiple whistleblowers in a False Claims Act case alleging Unitrans International and Anham FZCO violated the US sanctions regime against Iran in securing military contracts to provide food and transportation to US troops.  In December 2019, Unitrans agreed to pay $45 million to resolve criminal and civil charges relating to the matter.  Our clients received a whistleblower award of 28.5% of the government's civil recovery.  Read more -- Washington Post, DOJ, CC.

Tagged in: Certifications, Contract Non-Compliance, Criminal Proceedings, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Trade Agreements, Whistleblower Rewards,

October 10, 2019

A billboard licensing company that manages licenses in New York, Texas, Minnesota, and Missouri has agreed to pay $2.85 million to resolve fraud allegations.  In 2009 and 2011, All Vision LLC entered into contracts with USPS to manage licenses and collect payments on land that USPS leases out to billboard companies.  As part of the contract, All Vision had agreed to forward lease payments, less fees, to USPS in a timely manner, but allegedly withheld at least $8 million in payments while misrepresenting the actual amounts collected.  All Vision has since repaid over $5.2 million; the $2.85 million settlement will resolve all remaining claims.  USAO CO

Tagged in: Government Procurement Fraud, Misrepresentations,

October 4, 2019

Zaldy Sabino, formerly a contracting officer with the U.S. State Department, has been convicted of charges related to contracting fraud.  Sabino received hundreds of thousands of dollars in cash from the owner of a construction firm in Turkey that had multiple multi-million dollar contracts with the State Department.  Sentencing is set for February, 2020.  DOJ

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, Government Procurement Fraud,

September 26, 2019

A military contractor who previously plead guilty to accepting illegal kickbacks and committing wire fraud has been sentenced to over 2 years in prison and ordered to pay $1.4 million in restitution.  Despite being the true owner of Walsh Construction Services, LLC, James Conway concealed his ownership by signing contracts under Keith Walsh, a fictitious name.  He then used Walsh Construction to bill for $1.4 million of work the contractor purportedly performed at Picatinny Arsenal and Joint Base McGuire-Dix-Lakehurst, as well as collect on $180,345 of kickbacks from four subcontractors.  In addition to the prison term and restitution order, Conway was sentenced to three years of supervised release.  USAO NJ

Tagged in: Bribery and Bid-Rigging, Defense Contract Fraud, Government Procurement Fraud,

September 13, 2019

Defense contractor GS Engineering, Inc. agreed to pay $1 million to resolve allegations of double-billing federal defense agencies for certain data acquisition equipment. GS Engineering allegedly depreciated the equipment and both charged the government for the cost of the depreciation and leased that same equipment back to the government through a related company. The settlement required GS Engineering to enter into an agreement with the United States Army to hire and maintain a compliance program for government contracting. In addition, its president and four other companies agreed to be excluded from federal contracts for three years. DOJ

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

September 13, 2019

United Parcel Service will pay $8.4 million to resolve allegations that it overcharged federal agencies purchasing UPS ground delivery services under a General Services Administration Multiple Award Schedule contract by failing to adhere to the contract's Price Reductions Clause.  UPS was alleged to have offered lower prices to other customers without offering those same prices to the U.S., resulting in the government overpaying for package deliveries.  DOJ

Tagged in: Contract Non-Compliance, Government Procurement Fraud, Pricing Fraud,

September 5, 2019

The owner of two defense contracting firms, Tico Manufacturing Inc. (TICO) and Military and Commercial Spares Inc. (MCS), has been sentenced to 3 years in prison and ordered to pay $8 million in restitution for conspiring to defraud the Department of Defense.  Between 2011 and 2015, Roger Sobrado fraudulently obtained DoD contracts by claiming that conforming parts for critical military equipment, including fighter jets and helicopters, would be supplied through authorized manufacturers.  Instead, Sobrado supplied non-conforming parts through non-authorized manufacturers, recruited family members to commit the same fraud, and collected DoD payments from his family members.  Additionally, he failed to report almost half of his taxable income for three years, causing the United States to lose a total of $509,962.  USAO NJ

Tagged in: Contract Non-Compliance, Criminal Proceedings, Defense Contract Fraud, Government Procurement Fraud, Tax Fraud,

September 4, 2019

Defense contractor Arkin Industries has agreed to return $2.6 million in overpayments to the Department of Defense, Air Force, and Navy, after self-disclosing that it had detecting an error in its accounting system that double-billed worker hours.  The designer, tester, and manufacturer of aircraft and helicopter parts cooperated with an independent investigation by the United States, which determined that the overbilling was accidental.  USAO EDNY

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

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