This archive displays posts tagged as relevant to government contracting fraud involving pricing, including best price violations, Truth in Negotiations Act violations, and others. You may also be interested in the following pages:
The centuries-old yet enduring fraud of cheap-substitutions for quality foodstuffs reared its head during the U.S. Civil War when the government bought supplies from contractors: “For sugar, it often got sand; for coffee, rye; for leather, something no better than brown paper; for sound horses and mules, spavined beasts and dying donkeys; and for serviceable muskets and pistols, the experimental failures of sanguine...
COVID Frauds of the Week: More Price Gouging and PPP Fraud
As the COVID-19 pandemic remains omnipresent in our daily lives, so too do the fraudsters who seek to capitalize on the crisis and line their own pockets. Fortunately, government regulators have remained vigilant in rooting out fraud and protecting the public. Just in the past week, federal prosecutors have busted two large schemes seeking to profit off other's pain.
First, the U.S. Attorney’s Office for...
COVID Frauds of the Week: Price Gouging, Unapproved Treatments, and a Dead CEO
COVID-19 fraudsters really delivered this week, wherein we saw price gouging on masks, peddling of unproven “treatments” for COVID-19, and fraudulently-obtained PPP money spent on real estate, luxury goods, and personal—sometimes very personal—entertainment.
Starting in Pennsylvania, the Attorney General announced this week that two medical supply companies—American Surgical Supply and Keystone Medical...
As the federal government spends trillions of dollars to fight the coronavirus pandemic and alleviate its economic fallout, we can expect to see large chunks of that money misused and misappropriated by bad actors. Now more than ever, we’ll need whistleblowers to come forward to report what they see on the ground, whether it’s an unqualified company seeking Paycheck Protection Program funds intended for small...
In the second settlement to come out of a federal investigation into the generic pharmaceutical industry, Rising Pharmaceuticals Inc. has agreed to pay over $4 million to settle civil and criminal charges stemming from violations of the False Claims Act and Anti-Kickback Statute. In the criminal case, Rising allegedly teamed up with a competing generic drug manufacturer to fix prices and divide up the market for a hypertension drug, Benazepril HCTZ, while in the civil case, the company allegedly paid and received illegal remuneration through similar arrangements with another generic drug manufacturer. Under the newly signed deferred prosecution agreement, Rising has agreed to cooperate fully with the ongoing investigation. DOJ; USAO EDPA
United Parcel Service will pay $8.4 million to resolve allegations that it overcharged federal agencies purchasing UPS ground delivery services under a General Services Administration Multiple Award Schedule contract by failing to adhere to the contract's Price Reductions Clause. UPS was alleged to have offered lower prices to other customers without offering those same prices to the U.S., resulting in the government overpaying for package deliveries. DOJ
International SOS Assistance, Inc. and related entities and individuals have agreed to pay $940,000 to resolve claims that they overbilled TRICARE for air medical evacuation services provided to military service members and their families. International SOS was alleged to have negotiated discounts from third-party air ambulance services, but failed to pass those discounts on to TRICARE. The case was brought by a whistleblower who used to be a flight desk manager for International SOS; he will receive an award of $165,000. USAO EDPA
The FCC disburses billions of dollars every year for its massive Universal Service Fund (USF) and its laudable mission to promote telephone and internet access to all U.S. persons regardless of income and location. This massive pot of government money attracts a commensurate measure of opportunists seeking to defraud these well-meaning programs.