Government Procurement Fraud Archives - Page 37 of 40

August 11, 2015

Computer Supply company PC Specialists Inc. (d/b/a Technology Integration Group) agreed to pay $5.9 million to settle charges it inflated the price of computers sold through another company to the National Nuclear Security Administration for use at Sandia National Laboratories in Albuquerque, New Mexico. Specifically, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA. According to the government, TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract. The government’s allegations arose from a whistleblower lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam provisions of the False Claims Act. He will receive a yet-to-be determined whistleblower award. Whistleblower Insider

Tagged in: FCA Federal, Government Procurement Fraud, Pricing Fraud, Whistleblower Case, Whistleblower Rewards,

June 30, 2015

VMware Inc. and Carahsoft Technology Corporation agreed to pay $75.5 million to settle charges they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services. The allegations originated in a whistleblower lawsuit filed by Dane Smith, a former vice president of the Americas at VMware Inc., under the qui tam provisions of the False Claims Act. He will receive a yet-to-be-determined whistleblower award from a portion of the government’s recovery. Whistleblower Insider

Tagged in: FCA Federal, Government Procurement Fraud, Pricing Fraud, Whistleblower Case, Whistleblower Rewards,

May 19, 2015

Atlanta-based world-wide package delivery service United Parcel Service agreed to pay $25 million to resolve allegations it violated the False Claims Act by submitting false claims to the federal government in connection with its delivery of Next Day Air overnight packages. According to the government, UPS engaged in multiple practices to conceal its failure to comply with its delivery guarantees, thereby depriving federal customers of the ability to request refunds for late deliveries. The government’s allegations arose out of whistleblower lawsuit filed by former UPS employee Robert K. Fulk under the qui tam provisions of the False Claims Act. Mr. Fulk will receive a whistleblower award of $3.75 million. DOJ

Tagged in: Contract Non-Compliance, FCA Federal, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

April 21, 2015

R.J. Zavoral & Sons, Inc., John Zavoral, Peter Zavoral and Craig Pietruszewski agreed to pay $1.85 million to resolve allegations they violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act by making false statements to the Small Business Administration (SBA) and the US Army Corps of Engineers relating to the Heartsville Coulee Diversion construction contract they were awarded for flood control work in and around East Grand Forks, Minnesota. DOJ

Tagged in: FCA Federal, FIRREA, Government Procurement Fraud, Set-Asides and Preferences,

April 9, 2015

Sprint Communications, Inc. (formerly Sprint Nextel Corporation) agreed to pay $15.5 million to resolve allegations it defrauded federal law enforcement agencies when recovering its costs of carrying out court-ordered wiretaps, pen registers, and trap devices. DOJ

Tagged in: Contract Non-Compliance, FCA Federal, Government Procurement Fraud,

April 8, 2015

Orlando-based Air Ideal Inc. and its majority owner, Kim Amkraut, agreed to pay $250,000 to resolve allegations they made false statements to the Small Business Administration to improperly obtain certification as a Historically Underutilized Business Zone (HUBZone) company. They must also pay five percent of Air Ideal’s gross revenues over the next five years. Specifically, the government alleged Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the US Coast Guard, US Army, US Army Corps of Engineers and the US Department of the Interior. The allegations first arose in a whistleblower complaint filed under the qui tam provisions of the False Claims Act by Patricia Hopson. She will receive a whistleblower award of $42,500. DOJ

Tagged in: Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Set-Asides and Preferences, Whistleblower Case, Whistleblower Rewards,

March 18, 2015

Gilbane Building Company agreed to pay $1.1 million to resolve allegations that W.G. Mills Incorporated (which Gilbane merged with in November 2010) violated the False Claims Act by creating a front company, Veterans Constructors Incorporated (VCI), in order to be awarded a Coast Guard contract that was designated for Service Disabled Veteran Owned Small Businesses. VCI agreed to pay $50,000 plus five annual contingency payments equal to one percent of VCI’s total annual revenues to resolve the same allegations. DOJ

Tagged in: FCA Federal, Government Procurement Fraud, Set-Asides and Preferences,

December 19, 2014

Boston-based records storage company Iron Mountain agreed to pay $44.5M to resolve allegations it violated the False Claims Act by overcharging federal agencies for record storage services under General Services Administration (GSA) contracts. The charges originated with a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Brent Stanley, a former Iron Mountain employee, and Patrick McKillop, who worked in the records management industry. Collectively, they will receive a whistleblower reward of $8M. DOJ

Tagged in: FCA Federal, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

November 19, 2014

Washington Gas Energy Systems agreed to pay more than $2.5M for conspiring to commit fraud by illegally obtaining contracts that were meant for small, disadvantaged businesses. It is a wholly owned subsidiary of WGL Holdings Inc., the parent company for all of the corporations within the Washington Gas family. According to the government, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth almost $18M that should have gone to an eligible company. DOJ

Tagged in: Government Procurement Fraud, Set-Asides and Preferences,

October 21, 2014

Science Applications International Corporation(SAIC), now known as Leidos Holdings Inc., agreed to pay $1.5M to resolve False Claims Act allegations that it knowingly engaged in prohibited conflicts of interest as a contractor for the U.S. Nuclear Regulatory Commission (NRC) between 1992 and 2000. SAIC provides scientific, engineering and other technical services for government and commercial customers. Between 1992 and 2000, SAIC held two contracts with the NRC to provide scientific and technical services, including assisting the NRC in its consideration of a rule that could have permitted the release or recycling of certain types and quantities of material with very low levels of radioactivity below regulatory safety limits. According to the government, SAIC repeatedly and falsely certified it had no conflicting business relationships when in fact it actually engaged in multiple business relationships with entities that had a financial interest in the outcome of the NRC’s rulemaking effort. DOJ

Tagged in: Contract Non-Compliance, FCA Federal, Government Procurement Fraud,

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