Government Procurement Fraud Archives - Page 4 of 40

June 2, 2022

Aerospace company Numet Machining Techniques, LLC and related entities have agreed to pay $5.2 million after voluntarily disclosing to the government that Numet, which had certified itself as a small business concern, had affiliations with other businesses that, the government alleged, made it ineligible for 22 small business set-aside contracts that it had been awarded during the relevant time period. USAO CT

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

May 25, 2022

Textile manufacturer HEYtex USA will pay $3 million to resolve an action brought by a whistleblower under the False Claims Act alleging that the company knowingly supplied fabrics to the U.S. military that failed to meet contract specifications, and falsely certified that its military-grade fabrics met specifications when, in fact, they had failed to pass required testing. The whistleblower first reported the falsified test results to company management, but was initially ignored. USAO WD Va

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

May 18, 2022

Seven companies in South Korea have agreed to a joint settlement of $3.1 million to resolve allegations that they conspired to suppress and eliminate competition in bidding on 15 contracts for construction and engineering work on U.S. military bases in South Korea awarded by the U.S. Army Corps of Engineers between 2016 and 2019. The government alleged that as a result of the bid-rigging by the companies, Korea Engineering Consultants Corporation, Yul Lim Construction Co. Ltd., Shin Woo Construction & Industrial Co. Ltd., Seongbo Const. Ind. Co. Ltd., Wooseok Construction Co. Ltd., Yuil Engineering and Construction Co., and Seokwang Development Co. Ltd., the government paid substantially more for services performed under the contracts than it otherwise would have. DOJ

Tagged in: Bribery and Bid-Rigging, Defense Contract Fraud, FCA Federal, Government Procurement Fraud,

May 13, 2022

Hensel Phelps Construction Company has agreed to pay $2.8 million to resolve allegations of violating the False Claims Act in connection with a federal subcontract designated for service-disabled, veteran-owned small businesses (SDVOSB). Under a 2011 contract with the General Services Administration to construct a building in Washington, D.C., Hensel Phelps was required to set aside subcontracts for SDVOSBs and other small businesses. According to qui tam plaintiff Fox Unlimited Enterprises, LLP, the company instead made arrangements with another large business to provide equipment and installation services, and used a SDVOSB in name only. USAO NDNY, USAO EDWA

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

April 29, 2022

KCF Technologies, Inc., will pay the United States $1,226,436.14 for False Claims Act violations. KCF engaged in procurement fraud by billing labor time spent on commercial contracts improperly to DOD contracts it had with the Department of the Navy and the Department of the Army between 2016 and 2019. MDPA

Tagged in: Defense Contract Fraud, Falsifying Invoices, FCA Federal, Government Procurement Fraud,

March 25, 2022

A Department of Energy contractor that applied for and received a $1.3 million Paycheck Protection Program loan has, together with its owners, agreed to pay nearly $3 million in restitution and penalties to resolve their liability under the False Claims Act. HPM Corporation and owners Holly and Grover Cleveland Mooers admitted that they submitted materially false statements to the Small Business Administration in order to obtain the loan and induce a forgiveness of the loan. However, instead of using the funds on payroll, as they had represented, they transferred the entire amount to their personal account. USAO EDWA

Tagged in: FCA Federal, Government Procurement Fraud, Government Programs Fraud,

March 21, 2022

United Parcel Service Inc. (UPS) has agreed to pay $5.3 million to resolve its potential liability under the False Claims Act. Under a contract with USPS to deliver mail for various Department of Defense and State Department locations domestically and internationally, UPS was required to submit confirmation of delivery and delivery times to USPS. However, the company allegedly reported false information. DOJ

Tagged in: Certifications, Contract Non-Compliance, Government Procurement Fraud,

March 14, 2022

Freight carriers YRC Freight Inc., Roadway Express Inc., and Yellow Transportation Inc. will pay $6.85 million to resolve government claims that they knowingly overcharged the Department of Defense on military freight shipments. Whistleblower James Hannum, a Yellow Transportation employee, filed a qui tam action alleging that the companies had a practice of re-weighing shipments and, when the reweighs showed an increase from the original weight, defendants charged DOD for these higher weights, but when the reweighs showed a decrease from the original weight, defendants allegedly concealed the lower weight and instead charged DOD for the original, inflated weights. Hannum will receive a whistleblower award of approximately $1.3 million. DOJ

Tagged in: Defense Contract Fraud, Falsifying Invoices, FCA Federal, Government Procurement Fraud, Whistleblower Case, Whistleblower Rewards,

March 8, 2022

Comprehensive Health Services LLC (CHS), a Florida-based contractor that provides medical services at government facilities in Iraq and Afghanistan, has agreed to pay $930,000 to resolve claims under the False Claims Act. According to two separate qui tam cases filed in the Eastern District of New York, CHS falsely certified to the State Department and Air Force that it had complied with contractual cybersecurity requirements when, in fact, it had failed to to properly store patient medical records on a secure electronic medical record system, and had falsely represented that it used approved medical supplies when, in fact, it had relied on unapproved controlled substances from foreign sources. DOJ; USAO EDNY; USAO MDFL

Tagged in: Certifications, Contract Non-Compliance, Cybersecurity and Data Breaches, FCA Federal, Government Procurement Fraud,

March 7, 2022

MOX Services LLC, formerly known as CV&I AREVA MOX Services LLC (MOX), has agreed to a $10 million settlement to resolve allegations of violating the False Claims Act. As the prime contractor for a federal facility in South Carolina, MOX was responsible for confirming receipt of materials from any subcontractors before presenting claims to the government. According to the DOJ, however, MOX knowingly sought reimbursement from the Department of Energy for millions of dollars of materials not received from one of its subcontractors, Wise Services Inc., and which it submitted to the DOE in exchange for kickbacks from Wise. DOJ

Tagged in: FCA Federal, Government Procurement Fraud,

Contact

Click here for a confidential contact or call:

Tags

Government Procurement Fraud