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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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January 5, 2022

A Kansas-based contractor who illegally obtained $346 million in contracts set aside for service-disabled veterans and certified minorities has been sentenced to a little over two years in prison and ordered to forfeit over $5.5 million.  Between 2009 and 2018, defendant Matthew McPherson was awarded approximately 199 federal contracts, upon which he was paid approximately $335 million, through Zieson Construction Company, which was nominally owned by an African-American service-disabled veteran.  When the company grew too large to compete for small business contracts, McPherson used an employee’s Native American minority status to set up Simcon Corp in order to obtain additional contracts.  USAO WDMO

Catch of the Week: Privatized Military Housing Contractor Pays Over $65 Million to Resolve Criminal and False Claims Act Allegations

Posted  12/23/21
Government contractors are held to high standards in the performance of their contracts or services because of the direct impact to government services and taxpayer dollars at stake. Often fraud related to government contractors can negatively impact U.S. servicemembers or public servants who diligently serve our country. This week we focus on the over $65 million judgment and settlement reached between the...

December 23, 2021

Military housing provider Balfour Beatty Communities LLC will pay over $65 million and plead guilty to fraud charges arising from their scheme to secure incentive payments on contracts by submitting falsified information claiming to have met performance objectives when, in fact, they had not met those objectives.  BBC employees altered or manipulated data in property management software regarding property maintenance and destroyed and falsified resident comment cards.  The settlement agreement and plea agreement includes a $33.6 million criminal fine, over $31.8 million in restitution, and $35.2 million to resolve civil liability under the False Claims Act.  BBC will be on probation for three years and be subject to independent compliance monitoring.  DOJ; USAO SD GA; USAO WD OK

December 21, 2021

Information technology contractor Telophase Corporation will pay $1.4 million to resolve allegations that it overcharged NASA under a cost-plus fixed-fee contract.  The government alleged that Telophase submitted false claims for excessive labor hours and costs.  USAO Md

December 14, 2021

Michigan-based Metna Co., a research and development firm which had contracts with the U.S. Army, has agreed to pay $500,000 to resolve claims that in improperly concealed its use of foreign nationals on Army Small Business Innovation Research contracts.  The government alleged that Metna employed foreign graduate students on F-1 student visas, misrepresenting their work to their university and paying them substantially less than the hourly labor rate that Metna quoted to the Army in its contract budget proposals.  USAO WD MI

November 29, 2021

General contractor J.A. McDonald, Inc. has agreed to pay $637,500 to settle allegations of presenting false claims to the United States and State of Vermont in connection with the federally-funded construction of several bridges.  Employees at the company allegedly made material alterations, then took steps to conceal those alterations from the Vermont Agency of Transportation, which then caused the agency to submit false claims to the Federal Highway Administration.  USAO VT

Next Up: Infrastructure Oversight Week?

Posted  11/12/21
freeway bridge and crane
More than four years after “Infrastructure Week” was first announced by President Trump back in June 2017, Congress has finally passed an infrastructure bill and President Biden will soon sign it into law.  A staggering $1.2 trillion in taxpayer money will soon start flowing from the U.S. Treasury to private contractors to upgrade the nation’s roads, bridges, power grid, and other public works.  Is it too soon...

Attention Whistleblowers: DOJ Announces Cyber Fraud Initiative

Posted  10/7/21
On October 6, Deputy Attorney General Lisa Monaco announced that the Department of Justice will launch a Civil Cyber-Fraud Initiative to combat new cyber threats and hold accountable those “that put U.S. information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor...

October 6, 2021

Defense contractor Crane Company has agreed to pay over $4.5 million to resolve allegations of violating the False Claims Act.  According to a former Crane employee, Corla Jacobson, the failures occurred between 2011 and 2017 and involved selling the U.S. Navy high performance butterfly valves that did not conform to military specifications.  For initiating a successful qui tam action, Jacobson will receive a relator’s share of over $850,000.  USAO SDTX
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