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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 28 of 40

May 4, 2018

Cary Hudson, a former financial administrator for the U.S. Bureau of Prisons, agreed to pay $50,000 to resolve allegations he violated the Anti-Kickback Act by accepting improper payments from Texas-based Integrated Medical Solutions Inc. in exchange for his assistance in obtaining BOP contracts. IMS and its former president Jerry Heftler previously agreed to pay more than $2.4 million for their role in the alleged scheme. DOJ

May 3, 2018

Maryland-based MassTech, Inc. along with its former CEO and CFO have agreed to pay $1.9 million to resolve allegations that the company violated the False Claims Act by falsely certifying it was a small business concern in order to obtain Small Business Innovation Research (SBIR) awards. According to the government, MassTech falsely represented to NSF, NASA, and HHS that it was an eligible small business concern at the time of its SBIR application and throughout the lifecycle of the award and as a result the government approved and funded SBIR awards to MassTech that it otherwise would not have received. DOJ (MD)

May 2, 2018

New Jersey construction company Ranco Construction agreed to pay $1.5 million to resolve allegations it violated the False Claims Act by contracting for public construction jobs despite paying its workers a lower hourly wage than required under state and federal law. Specifically, the government claimed that Ranco routinely entered into construction contracts with various state and federal entities and falsely certified to the government that its employees were paid hourly wage rates set under federal and New Jersey prevailing wage laws. The allegations originated in a whistleblower lawsuit filed former Ranco employee Robert Kleinow under the qui tam provisions of the False Claims Act. He will receive of a whistleblower award of more than $150,000 from the proceeds of the government’s recovery. DOJ (NJ)

April 19, 2018

Former professional cyclist Lance Armstrong agreed to pay $5 million to settle claims he violated the False Claims Act through his admitted use of performance-enhancing drugs and methods resulting in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former teammate Floyd Landis.  Landis will receive a whistleblower award of $1.1 million from the proceeds of the government’s recovery. DOJ

April 2, 2018

Utah construction companies Big-D Construction Corp. and Creative Times Day School, Inc. agreed to pay roughly $1 million and $150,000 respectively to settle claims they violated the False Claims Act by violating the terms of a Small Business Administration (SBA) program for small and disadvantaged businesses. DOJ (Utah)

March 15, 2018

Japanese-based Toyobo Co. Ltd. and its American subsidiary Toyobo U.S.A. Inc. agreed to pay $66 million to resolve claims they violated the False Claims Act for selling defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies. According to the government, Toyobo knew that Zylon degraded quickly in normal heat and humidity, and that this degradation rendered bullet proof vests containing Zylon unfit for use. But Toyobo nonetheless actively marketed Zylon fiber for bullet proof vests, published misleading degradation data that understated the degradation problem. The settlement is part of a larger investigation of the body armor industry’s use of Zylon in which the government previously recovered more than $66 million from 16 entities involved in the manufacture, distribution or sale of Zylon vests. The allegations surrounding this settlement originated under the whistleblower provisions of the False Claims Act by law enforcement officer Dr. Aaron Westrick, who is now a Criminal Justice professor at Lake Superior University. He will receive a whistleblower award of $5,775,000 from the proceeds of the government's recovery. DOJ

March 12, 2018

Virginia-based trucking company Beam Bros. Trucking Inc. and its principals Gerald and Garland Beam agreed to pay roughly $1 million to resolve allegations they violated the False Claims Act through the company's overcharging the U.S. Postal Service on contracts to transport mail. According to the government, Beam Bros. misused government Voyager Cards, provided by USPS to purchase fuel, to purchase fuel on contracts that did not allow for their use, resulting in inflated charges. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Beam Bros. employee Bobby Blizzard. He will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ

March 9, 2018

San Diego communications company TrellisWare Technologies, Inc. agreed to pay roughly $12.2 million to settle claims it violated the False Claims Act by entering into multiple Small Business Innovation and Research (SBIR) contracts with government defense agencies for which it was ineligible. DOJ (SDCA)

February 6, 2018

Maryland-based Integral Consulting Services, Inc., which provides IT solutions to federal agencies and commercial organizations, agreed to pay roughly $500,000 to settle claims it violated the False Claims Act by inflating certain indirect cost rates in connection with work performed on a Department of the Army contract. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The whistleblower will receive a whistleblower award of roughly $92,000 from the proceeds of the government’s recovery. DOJ (MD)
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