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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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September 10, 2020

Asphalt contractor Dave O’Mara Contractor, Inc. will pay $4.25 million to resolve claims that in performing and billing for repaving work that was funded in part by the Federal Highway Administration, they falsely represented that they were including steel slag in the asphalt mixture when they were not in fact doing so, increasing the chance that the roads would prematurely deteriorate. DOJ; USAO SD IN

August 31, 2020

CDM Smith Inc. and CDM Federal Programs Corporation paid $5.6 million to resolve charges that they violated the False Claims Act and Truth in Negotiations Act by submitting inaccurate cost and labor hour estimates and related certifications in connection with task orders on a federal contract to supply architect-engineering services to Navy bases.  The case was initiated by an unnamed whistleblower, who will receive a share of the recovery.  USAO ED VA

For Garlic Powder They Got Maltodextrin

Posted  08/28/20
By Jessica T. Moore
The centuries-old yet enduring fraud of cheap-substitutions for quality foodstuffs reared its head during the U.S. Civil War when the government bought supplies from contractors: “For sugar, it often got sand; for coffee, rye; for leather, something no better than brown paper; for sound horses and mules, spavined beasts and dying donkeys; and for serviceable muskets and pistols, the experimental failures of sanguine...

August 21, 2020

Fire protection services contractor Fiore Industries Inc. will pay $1.2 million to resolve claims that it violated the False Claims Act by overstating its workers’ compensation rates in submitting claims for work it preformed at NASA’s Ames Field Center, thereby overcharging the government.  Fiore’s stated workers compensation rates did not account for discounts it knew it would receive.  USAO ND Cal

July 20, 2020

Defense contractor iNovex Information Systems, Inc., will pay $1 million to resolve claims that it violated the FCA by overcharging the National Security Agency.  Defendant allegedly invoiced the NSA for services it claimed were provided by personnel who met contractually specified training and qualification requirements when, in fact, it knew that those employees did not meet all of the specialized qualifications.  USAO MD

COVID-19 Frauds of the Week: Fake Employees and Fake Treatments

Posted  07/17/20
handcuffs on a gavel with money scattered around
Taxpayers, rightfully upset about large companies such as Shake Shack and Ruth’s Chris Steakhouse claiming large sums of Paycheck Protection Program money from the Small Business Administration, should consider shifting some of their ire to applicants posing as the original intended recipients—small businesses—who are getting in on the grift. And for fraudsters who prefer to market unproven products rather than...

The Border Wall Falls Down

Posted  07/15/20
By Sarah “Poppy” Alexander
a tall border wall in the middle of the dessert
In 2018, Constantine Cannon’s Mary Inman warned President Trump away from his pet border wall project as a surefire target for fraudsters.  Two years later, here we are. Trump’s announced plan to build a wall along the 1,954 mile border between the U.S. and Mexico was a key campaign promise.  That plan has now devolved into a series of piecemeal incomplete sections, including some that are privately funded....

This Week in Whistleblower History: House Resolution on July 8, 1861 Led to the Original False Claims Act

Posted  07/10/20
By Edward Baker
Photo of Winder Building in Washington DC
This week marks an important event in whistleblower history.  On July 8, 1861, Congressman Charles H. Van Wyck of New York submitted a resolution to the U.S. House of Representatives to create a special committee of five members appointed by the Speaker of the House to investigate fraud and profiteering in military contracts during the Civil War.  The committee’s investigations ultimately led to the enactment of...

June 22, 2020

A former employee of Schneider Electric Buildings America, Bhaskar Patel, has been sentenced to three years of probation and ordered to forfeit over $2.5 million in connection with a five-year bribery scheme involving several federal energy savings performance contracts.  Patel had pleaded guilty to soliciting and receiving over $2.5 million in bribes from eight Schneider subcontractors on the contracts, which included a $24.7 million project for the USDA in California, two projects amounting to $34.4 million for the GSA in Puerto Rico and the Virgin Islands, a $42.4 million project for the VA in the Northeast, a $70 million project for the Coast Guard in Puerto Rico, and a $114.3 million project for the Navy in California.  USAO VT

Catch of the Week: Tacoma foundry pays 10.8M settlement over deficient steel parts destined for U.S. Navy submarines, falsified tests

Posted  06/18/20
US-Navy-ships-in-the-middle-of-the-ocean
The latest in our Catch of the Week series features Bradken Inc.’s $10.8 million payment to resolve allegations that its Tacoma foundry violated the False Claims Act (“FCA”) when it produced and sold substandard steel parts for U.S. Navy submarines and falsified test results to hide the failures. Bradken and its former lab director Elaine Thomas also face criminal charges. The company accepted responsibility and...
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