This Week in Whistleblower History: The Hall Carbine Affair and Defense Procurement Fraud
Posted 10/2/20
Trade Agreements
This archive displays posts tagged as relevant to fraud in government contracting arising from violations of trade agreements and restrictions, including Buy American requirements and export restrictions. You may also be interested in the following pages:
December 12, 2019
For selling defective, Chinese-made products to the U.S. Department of Defense on fraudulently obtained contracts, Timothy Kelly, a California business manager for Emerson Company, has been sentenced to 2.5 years in prison. Together with company owner Daniel Norton, who was sentenced to 8 years in prison, the two have also been ordered to pay $2.38 million in restitution, forfeit $333,000 in a bank account, and forfeit a $725,000 house in Hawaii. USAO SDOHNovember 18, 2019
Daniel Norton, the owner of former DOD contractor Emerson Company, has been sentenced to 8 years in prison following his guilty plea on charges that he fraudulently obtained government contracts and obstructed justice. According to the evidence at trial, Emerson Company had been debarred in 2011, but Norton used front companies to fraudulently secure purchase orders for parts to be supplied to the military. In violation of contract Buy-American requirements, Norton filled the purchase orders by supplying non-conforming products manufactured in China, even where the contract called for a specific part from an American manufacturer. In addition to his prison sentence, Norton was ordered to pay $2.4 million in restitution, and forfeit property valued at over $1 million. USAO SD OHUnitrans/Anham - Procurement Fraud/Defense ($45 million)
Constantine Cannon represented multiple whistleblowers in a False Claims Act case alleging Unitrans International and Anham FZCO violated the US sanctions regime against Iran in securing military contracts to provide food and transportation to US troops. In December 2019, Unitrans agreed to pay $45 million to resolve criminal and civil charges relating to the matter. Our clients received a whistleblower award of 28.5% of the government's civil recovery. Read more -- Washington Post, DOJ, CC.June 20, 2019
Pennsylvania-based Support of Microcomputers Associates (SOMA) has agreed to a $300,000 judgment for violating the False Claims Act and Trade Agreements Act. The Trade Agreements Act prohibits the sale of computer supplies manufactured in certain countries to some federal agencies, such as the Department of Defense. However, according to a former SOMA executive’s lawsuit, the company allegedly sold federal agencies computer supplies made in China, Vietnam, and other non-compliant countries. USAO EDPAMay 13, 2019
Silicon Valley-based software company Informatica LLC will pay $21.57 million to resolve allegations that it provided false information about its commercial pricing and discounting practices that was then used in negotiations for Multiple Award Schedule contracts with the General Services Administration. In addition, Informatica was alleged to have caused sales to the U.S. in violation of the Trade Agreements Act. The whistleblower, a former employee of Informatica, will receive $4.3 million from the settlement. DOJFraud in GSA Contracts: How to Report it Under the False Claims Act for a Whistleblower Reward
Posted 05/13/19
- Office supplies,
- Telecommunications equipment and services,
- Computer hardware and software,
- Consulting services,
- Vehicles,
- Travel services,
- and so on.
Catch of the Week — DOJ Settles False Claims Act Case Against Cybersecurity Company
Posted 04/18/19
