False Claims Act Summary for 2019 – Procurement Fraud

The US Justice Department announced on January 9, 2020, that there were large recoveries in the procurement fraud sector because of claims brought through the Federal False Claims Act. Some of the major recoveries included the following case:

  • Five South-Korean based companies paid more than $162 million to resolve allegations of anticompetitive conduct – by “targeting contracts to supply fuel to the U.S. military in South Korea and making false statements to the government in connection with their agreement not to compete.” As a result of their conduct, the US Department of Defense paid more for energy supply services in South Korea that it should have.
  • A company paid $34.6 million based on allegations of fraudulent billing to NASA and to the US Department of Defense. The company was charged with providing false certifications and altering test results. As a result, several NASA rockets crashed causing the loss of the payloads.
  • Northrup Grumman Systems Corporation paid $27 million based on charges the company billed the US Air Force “for labor hours purportedly incurred by individuals stationed in the Middle East who had not actually worked the hours claimed.”
  • Several airlines paid $27.8 million “to resolve allegations that they falsely reported the times they transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).”
  • A software company paid $21.57 million to settle charges the company overcharged the government by providing misleading information about its commercial sales practices including the company’s commercial discounting policies. The false disclosures caused GSA (General Services Administration) to agree to less favorable pricing, and, ultimately, government purchasers to be overcharged.

Overbilling, billing for services never rendered, creating false scenarios to justify bills, and other misconducts are some of the grounds for filing a False Claims Act case with a false claims attorney. Whistleblowers who are aware of procurement fraud and make a disclosure that helps the government obtain a recovery – may be entitled to a percentage of that recovery.

The California Law Offices of Stephen A. Danz and Associates has been a strong advocate for whistleblowers for nearly 40 years. Our law firm provides service to clients nationwide and we make ourselves available for whistleblowers 7 days a week. To discuss your disclosure, call us at 877-789-9707 or fill out our online contact form to schedule an appointment.