Government Procurement Fraud

March 8, 2016

The Kennebec Journal and Morning Sentinel profile whistleblower Brain Emery, represented by Constantine Cannon attorneys Tim McCormack and Molly Knobler.  Click here to read the article.

March 4, 2016

Constantine Cannon is pleased to announce that its client, whistleblower Brian Emery, helped the U.S. Government recover $439,500 over allegations of faulty workmanship and the use of non-compliant materials in three federal building projects in Maine.  Click here to read more.

March 1, 2016

Connecticut-based construction company URS Corporation agreed to pay $580,000 to resolve allegations it violated the False Claims Act by overbilling the government on a bridge reconstruction project funded by the National Railroad Passenger Corporation (Amtrak).  It allegedly did so by charging the maximum labor rates listed on the contract rather than the actual labor rates.  DOJ (CT)

February 29, 2016

Lockheed Martin Corporation (and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services) agreed to pay $5 million to resolve allegations they violated the Resource Conservation and Recovery Act (RCRA) and the False Claims Act by knowingly submitting false claims for payment under their contracts with the Department of Energy to operate the Paducah Gaseous Diffusion Plant in Kentucky.  According to the government, Lockheed Martin violated the RCRA, which establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste.  The government alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.  The allegations originated in two whistleblower lawsuits filed under the qui tam provision of the False Claims Act by the Natural Resources Defense Council and several former employees of Lockheed Martin who worked at the Paducah facility.  The whistleblowers will collectively receive a whistleblower award of $920,000 from the proceeds of the government's recovery.  DOJ

February 22, 2016

Government contractor Paige Industrial Services, Inc. agreed to pay between $450,000 and $675,000 to resolve allegations it violated the False Claims Act by submitting claims falsely certifying it had complied with the Davis-Bacon Act, which requires the payment of certain prevailing wages and fringe benefits to employees working under a government contract.  The work involved construction and maintenance services at the National Institute of Health campus in Bethesda, Maryland.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The unidentified whistleblower will receive a yet-to-be-determine whistleblower award from the proceeds of the government's recovery.  In a related parallel criminal proceeding, Luis Alonso Valle, owner of the Paige subcontractor construction company Valle Services, LLC., pleaded guilty to an illegal pattern and practice of hiring unauthorized aliens.  DOJ(MD)

February 17, 2016

The Justice Department announced that an Enterprise, Alabama, resident was sentenced to 48 months in prison to be followed by three years of supervised release for accepting unlawful kickbacks and tax evasion. According to court documents and statements made in open court, Victor Villalobos, 47, worked for a federal prime contractor at Fort Rucker, Alabama. In 2009, Villalobos approached Maxim Silinsky, a Florida-based subcontractor for this company, and solicited illegal kickbacks on the federal subcontracts that Silinsky held in connection with the federal prime contractor. As part of his plea, Villalobos admitted that from June 2009 to December 2014, he received approximately 57 separate wire transfers totaling more than $1.9 million in kickback payments from various foreign and domestic bank accounts controlled by Silinsky. DOJ

February 3, 2016

Upstate New York construction company ING Civil, Inc. and three individuals -- ING owner Corey Ingerson; James Beaudoin, former president of Rexford Albany Municipal Supply Company, Inc. (RAMSCO); and former RAMSCO salesman John Leary -- agreed to pay $1,012,000 to resolve claims that they defrauded a government program designed to benefit women- and minority-owned contractors.  DOJ (NDNY)

February 2, 2016

Colorado-based construction management company MCC Construction Company agreed to pay $1,769,294 in criminal penalties and forfeiture for conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses.  According to court documents, MCC conspired with two companies that were eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that MCC would, illegally, perform all of the work.  In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011.  DOJ