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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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Constantine Cannon Client’s Historic False Claims Act Settlement Against Cisco for Cybersecurity Fraud Makes Headlines

Posted  08/9/19
Numbers One and Zero for Coding with Word Hacked
If you’ve ever seen a heist movie, you likely know the scene. The technology-savvy member of a motley crew of criminals is huddled in a van or in a secret lair, surrounded by monitors. After a tense few minutes of maniacal typing, he or she yells “I’m in!” and hacks into the video surveillance system of the target hotel/casino/museum. In an instant, the cameras switch off or go to a pre-taped reel, and the...

August 8, 2019

Ambu, Inc. has agreed to pay $3.3 million to resolve its liability under the False Claims Act in connection with allegations that it knowingly sold the government medical supplies that were not in compliance with the Trade Agreements Act (TAA).  Although the TAA only permits government purchases of products from countries with whom the U.S. has a trade agreement, Ambu allegedly sold products from China and Malaysia and falsely certified that they came from compliant countries.  USAO EDPA

August 5, 2019

Nagan Construction, Inc. of New York has agreed to pay $435,000 to resolve a civil fraud suit filed by an unnamed whistleblower, alleging that Nagan underpaid 20 employees working on two projects for the U.S. Merchant Marine Academy and the Department of Labor.  Nagan also allegedly violated the False Claims Act and the Davis-Bacon Act by misclassifying the skilled workers as unskilled workers in required certifications to the government.  As part of the settlement, $242,376 will be distributed to current and former employees.  USAO SDNY

Cisco Systems, Inc. – Government Contract Fraud/Non-Conforming Product ($8.6 million)

Constantine Cannon represented whistleblower James Glenn against Cisco in the first cybersecurity whistleblower case ever successfully resolved under the False Claims Act. Cisco Systems, Inc. agreed to an $8.6 million settlement to resolve allegations it knowingly sold vulnerable video surveillance software to federal, state and local government agencies, exposing government systems to the risk of unauthorized access and the manipulation of vital information. The whistleblower, who worked in Europe for a Cisco partner, had reported critical security vulnerabilities in the software to Cisco, but Cisco had continued to sell the technology to government entities, including the District of Columbia and 15 states, despite the fact that the software failed to comply with FAR procurement standards that require basic cybersecurity controls, including those set forth by the National Institute of Standards and Technology.  Read more: Press Release; Whistleblower Insider

Cisco Whistleblower Represented by Constantine Cannon Wins First-Ever False Claims Act Settlement for Cybersecurity Fraud

Posted  07/31/19
Cisco company sign
In the first cybersecurity whistleblower case ever successfully litigated under the False Claims Act, Cisco Systems, Inc. has agreed to an $8.6 million settlement to resolve allegations it knowingly sold vulnerable video surveillance software to federal, state and local government agencies, exposing government systems to the risk of unauthorized access and the manipulation of vital information. This qui tam...

July 25, 2019

California-based telecommunications company Silvus Technologies, Inc., will pay $436,000 to resolve claims under the False Claims Act that the company overcharged the Air Force on three separate cost-based contracts.  The company was alleged to have included unallowable costs and improperly charged employee costs to the contracts.  The overcharges resulted from internal controls that the government described as inadequate to accurately track direct and indirect costs.  USAO N.D.N.Y.

How Businesses Can Use Whistleblower Reward Laws to Stop Unfair Competition

Posted  07/22/19
Runner in track race starting before other racers
Most anyone can be a whistleblower. The role is not limited to the corporate insider or company employee at the meeting, on the conference call or in receipt of the email or text message where the “smoking-gun” evidence of fraud or misconduct is disclosed. Whistleblowers can be any person, or an entity, with non-public information about fraudulent conduct giving rise to a whistleblower claim.  Often, businesses...

ITT Cannon Pays $11M to Settle Whistleblower Claims of Government Contracting Fraud

Posted  07/18/19
electrical connectors scattered around
On Tuesday, the Department of Justice announced that defense contractor ITT Cannon will pay $11 million to settle allegations it violated the False Claims Act by supplying electrical connectors to the military that had not been properly tested. The company sold the untested connectors to the government directly and through distributors and other government contractors. See DOJ Press Release. According to the...

July 16, 2019

A government contractor has agreed to pay $11 million to settle False Claims allegations of directly and indirectly supplying improperly tested electrical connectors to the U.S. military.  According to Ralph Tatgenhorst, a former regional quality manager for ITT Cannon, the company repeatedly failed to test six different models of connectors even after the government learned of the failure, and even after the company promised it would conduct remedial testing.  For coming forward with a successful qui tam case, Tatgenhorst will receive a relator’s share of $2 million.  DOJ; USAO CDCA
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