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:
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. DOJKorean 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.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 WAOctober 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 NDNYAmazon Feels the Force
Posted 10/17/19
