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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 25 of 40

Catch of the Week – Northrop Grumman Systems

Posted  11/8/18
Northrop Grumman Systems Corporation agreed to a $31.65 million settlement to resolve allegations that it overstated employee hours on two government contracts related to battlefield communications services for the United States Air Force.  Of the total settlement, $27.45 million was paid to resolve civil allegations that NGSC violated the False Claims Act, and $4.2 million was forfeited by the company to resolve...

November 5, 2018

The owner of WOW Imaging Products LLC and Time Enterprises LLC pled guilty to defrauding government agencies of approximately $3.5 million over the course of six years. Beginning in 2011, Jim A. Meron allegedly profited substantially from office products his companies sold to federal agencies through sales portals run by the General Services Administration (GSA) and Department of Defense (DoD). Although Meron’s government clients placed orders for premium products, he often sent products that cost a fraction of what they paid, pocketing the difference in price. In addition to forfeiting $1.7 million in assets, Meron now faces a maximum of 20 years and hundreds of thousands of dollars in fines; his sentencing is scheduled for February 2019. USAO EDCA

October 12, 2018

Michael Martin, the owner of a New York-based general contractor called Eastern Building & Restoration, Inc. has plead guilty to a multitude of charges, including fraudulently obtaining public works contracts, withholding over $400,00 in wages from over 50 employees, and stealing over $150,000 each from a minority-owned business and an insurance company. According to the Attorney General, Martin and co-defendant Dr. Scott Henzel, also of Eastern Building and Restoration, took control of two minority-owned businesses in order to fraudulently obtain millions of dollars worth of contracts intended for minority-owned businesses. Furthermore, they underpaid laborers working on public works projects and created false documentation and certifications stating otherwise. Separately, Martin also embezzled over $150,000 from one of the businesses and caused a false insurance claim to be filed on its behalf. He will be sentenced in both Albany and Schenectady counties in early December.  NY AG

Havian opens trial in damages phase of FCA case against top PVC water-pipe maker, J-M Eagle

Posted  10/11/18
Constantine Cannon partner Eric Havian launched the damages-phase of a trial against J-M Eagle with opening statements on October 10, 2018. As reported by Daniel Siegal in Law360, a Los Angeles federal jury will hear evidence in a long-running case by public entities in several states who bought large transmission water-pipe from the nation’s number one PVC pipe company. A November 2013 jury unanimously found in...

October 5, 2018

Contractor Martin Enterprises, Inc. and its surety Philadelphia Indemnity Insurance Company have agreed to pay $61,016 to settle claims under the False Claims Act that Martin falsely claimed payment for work under the federal Blight Elimination Program, which is funded by the Troubled Asset Relief Program.  Martin had been required to fill excavation sites in Ft. Wayne, Indiana with clean fill, but instead filled them with construction debris.  USAO N.D. In.

September 12, 2018

Sonag Ready Mix, LLC and owner Nicholas Rivecca have agreed to pay $629,732 to settle claims under the False Claims Act of defrauding the Department of Transportation's Disadvantaged Business Enterprise (DBE) program, which gives socially and economically disadvantaged owners of small businesses a chance to compete for transportation-related government contracts. As ineligible applicants to the DBE program, the defendants allegedly got another entity, Nuvo Construction Company, Inc., certified and awarded contracts under the program, then did nearly all of the work for the contract and received all of the profits. USAO EDWI

September 10, 2018

A contractor tasked with replacing the roof and air conditioning systems in government buildings in Tennessee has been sentenced to 24 months in prison for fraud. The contractor, M. Cleve Collins, had filed false reimbursement claims with the General Services Administration (GSA) for $580,000 that he'd supposedly paid a small roofing subcontractor for work it had performed. However, the subcontractor was never paid, and Collins has been ordered to pay restitution of $517,750. USAO WDTN

September 6, 2018

Newman Broadcasting, Inc. has been issued a judgment for breach of contract with the Federal Communications Commission (FCC) and will pay $910,700 to resolve a lawsuit alleging False Claims Act violations. While bidding for rights to certain radio frequencies, the Florida-based broadcasting company had falsely certified that it was eligible to receive a credit for new participants, when in fact it was not because it was partially owned and operated by an experienced industry professional. DOJ

September 6, 2018

The owner of New Jersey-based defense contracting firm, Bright Machinery Manufacturing Group Inc (BMM), has been charged with defrauding the Department of Defense and violating the Arms Export Control Act. From 2010 to 2015, Ferdi Gul—currently at large in Turkey—submitted bids and was awarded 346 contracts worth $7 million to manufacture military parts within the U.S., including torpedoes, firearms, and mine clearance systems. Instead, Gul had the parts made in Turkey, submitted false quality control paperwork, and sent the parts back to the U.S. to DoD customers. In subsequent testing by the DoD, some of the parts were shown to be essentially unusable. If found and convicted, Gul could be imprisoned for a maximum of 160 years and be ordered to pay up to $3.5 million. USAO NJ
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