Contact

Click here for a confidential contact or call:

1-212-350-2764

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 3 of 28

June 16, 2020

The U.S. Navy’s leading supplier of high-yield steel for submarines, Bradken Inc., has agreed to pay $10.8 million and comply with a three-year deferred prosecution agreement in order to settle allegations it violated the False Claims Act through its Tacoma foundry producing and selling steel that failed to meet certain strength standards required by the Navy.  In 2017, the defense contractor discovered and self-disclosed that test results for a substantial portion of its steel productions, spanning thirty years, had been improperly altered by then director of metallurgy, Elaine Thomas, causing shipbuilders to submit false claims to the Navy.  DOJ; USAO WDWA

June 12, 2020

A major Virginia-based defense contractor, Science Applications International Corporation (SAIC), has paid $5.98 million to settle claims arising from a self-disclosure that it violated the False Claims Act on a contract to provide IT support to the U.S. Army.  According to SAIC, employees working on newer projects that were not yet funded had billed their time to older projects that were funded.  When funding became available on the newer projects, employees working on the older projects then billed their time to the newer project.  USAO SDCA

June 10, 2020

Alutiiq International Solutions LLC (AIS), an Alaskan Native Corporation and government contractor, has agreed to pay $1.25 million and enter into a non-prosecution agreement to settle allegations of violating the Anti-Kickback Act in connection with a multi-million dollar General Services Administration (GSA) contract to modernize the Harry S. Truman Federal Building in Washington, D.C.  Beginning in 2010, a project manager formerly employed by AIS allegedly accepted kickbacks from a subcontractor in exchange for steering more work to the subcontractor, while also fraudulently billing GSA for a non-existent on-site supervisor and overinflating costs from its subcontractor.  AIS and its parent company, Afognak Native Corporation, cooperated fully with the investigation and have since engaged in extensive remedial actions.  DOJ

June 10, 2020

A South Korean engineering company has been ordered to pay $68 million in criminal fines, civil penalties, and restitution after pleading guilty to defrauding the U.S. Army in a 2008 contract worth hundreds of millions of dollars.  According to the press release, SK Engineering & Construction Co. Ltd. (SK) submitted documents to the Army that were doctored to conceal $2.6 million in payments to a fake construction company that had bribed an Army Corps of Engineers official on SK’s behalf.  The company also took steps to hamper investigations by U.S. and Korean officials by withholding and destroying relevant documents, attempting to tamper with a potential witness, and failing to properly discipline the employees involved with the bribery scheme.  SK was suspended from participating in certain contracts with the U.S. government in 2017; with this plea agreement, it will undergo another three years of probation.  DOJ

Fraudsters Beware: Flurry of Recent Actions in Enforcement Show that Contracting Fraud is a Priority

Posted  06/3/20
Business sign saying "Come In We're Open" in white on blue background
Four recent state and federal actions indicate that government contracting fraud cases are in the spotlight. These actions all stemmed from alleged violations of laws that give certain businesses, such as, small, minority-owned, or veteran-owned businesses, advantages in obtaining government contracts. These contracts are often called “preference” or “set-aside” contracts and the goal of these laws is to...

May 27, 2020

A contractor tasked with constructing a new terminal of the Peoria International Airport using FAA grant funds has agreed to pay $1 million to settle allegations that it fraudulently obtained the contract by misrepresenting its use of a disadvantaged small business.  In violation of grant rules as well as the False Claims Act, Williams Brothers Construction Inc. allegedly made false representations and submitted fraudulent documents to make it appear that an eligible firm would do work on the project when instead the work was handed off to an ineligible firm.  DOJ; USAO CDIL

What is an IG and Why do IGs Matter to Whistleblowers and in the COVID-19 Response?

Posted  04/10/20
Hand with magnifying glass and pencil examining books and records
As the COVID-19 crisis continues, and the government rolls out massive spending programs and regulatory changes in response, there has been significant news about inspectors general.  Inspectors General – IGs – and the teams that work for them, often referred to as the Office of the Inspector General or OIG, play a critical role in preventing mismanagement, waste, fraud, and abuse in government programs.  Iowa...

April 8, 2020

The last defendant in a conspiracy to rig bids and fix prices for supply fuel to U.S. military bases in South Korea has agreed to pay $2 million to resolve civil claims under Section 4A of the Clayton Act and the False Claims Act.  The government’s investigation into all defendants, including Jier Shin Korea Co. Ltd. and its president, Sang Joo Lee, were instigated by a whistleblower and resulted in a previous settlement of over $205 million.  As part of the settlement, Jier Shin and Lee have agreed to cooperate in the ongoing investigation and abide by an antitrust compliance program.  DOJ

April 6, 2020

Georgia-based MiMedx Group Inc. has agreed to pay $6.5 million to settle allegations of defrauding the Department of Veterans’ Affairs by knowingly submitting false commercial pricing disclosures, in violation of the False Claims Act.  According to a qui tam complaint by whistleblowers Jess Kruchoski and Luke Tornquist, the false pricing disclosures enabled MiMedx to charge inflated prices for human tissue graft products.  Kruchoski and Tornquist will receive a relator’s share of $1,625,000.  DOJ; USAO MN

The COVID-19 Crisis, Whistleblowers, and the Constantine Cannon Whistleblower Team

Posted  03/19/20
Soapy hands under running water faucet
As Constantine Cannon announced earlier this week, in response to the coronavirus (COVID-19) crisis, we have implemented contingency plans to work remotely.  While our work locations have changed, we remain dedicated to our whistleblower clients, and our team continues to provide whistleblowers with support and legal guidance. With offices in New York, D.C., San Francisco, and London, the Constantine Cannon...
1 2 3 4 5 28

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: