Articles Tagged with military contract fraud law firm

israel-palacio-463979-copy-300x200While qui tam cases brought under the False Claims Act (FCA) are often related to health care, qui tam cases can be in connection to any type of claim made to the federal government for payment. In addition to the health care industry, defense contractors are another area in which the government is vulnerable to fraudulent schemes. For example, Lockheed Martin Corporation has agreed to settle FCA allegations by paying the federal government $4.4 million. Lockheed is accused of providing defective communications systems to the U.S. Coast Guard.

Defective Equipment for the Military

The defense contractor provided Radio Frequency Distribution System (RFDS) for the Coast Guard’s National Security Cutters. According to the U.S. attorneys, the RFDS failed to be able to conduct simultaneous operations, meaning it could receive and transmit different radio signals at the same time without interference.

Last week, we flag2wrote about the importance of the False Claims Act as a tool for fighting defense contract fraud.  This week, we continue that discussion by focusing on a case that we touched upon in last week’s post.  This case stands out as particularly egregious of allegations that, if true, could have cost countless military members their lives.  It is an important example of the type of military contract fraud that honest whistleblowers can help bring to an end when they partner with the team at our government contract fraud law firm.

Defense Contractor to Pay $3 Million to Settle Allegations Regarding Ballistic Helmets that Failed Safety Tests

Earlier this year, the Department of Justice (“DOJ”) issued a press release announcing that ArmorSource, LLC would pay $3 million to settle a lawsuit filed pursuant to the False Claims Act.  As the DOJ explains, the U.S. Army entered into a contract with ArmorSource in 2006 pursuant to which the company was to manufacture Advanced Combat Helmets (“ACHs”).  ACHs are used by soldiers in combat and made out of Kevlar to help provide ballistic protection for the wearer.  According to the government, from 2006 to 2009, ArmorSource provided the Army with ACHs that did not conform to the requirementsoldierss in the government contract and did not meet contract performance standards.  The Army began recalling the ArmorSource helmets in May 2010 after several lots failed ballistic safety tests.

It’s no secret that as a government fraud militarywhistleblowers’ law firm, we are big fans of the False Claims Act (“FCA”).  The FCA is a valuable tool that gives ordinary citizens the power to help fight back against frauds perpetrated on the federal government. While we often write about health care fraud matters, one of the most important things to know about the FCA is that it can apply to frauds involving a wide-range of subject matters.  In these complex times, the FCA’s power is especially critical for fighting instances of defense contractor fraud.

Government Files Suit Alleging Defense Contractor Committed Fraud in Conjunction with Contract to Train Iraqi Civilian Police Forces

Last week, the Department of Justice (“DOJ”) issued a press release announcing that it had filed suit against DynCorp International Inc. (“DynCorp”), a government contractor headquartered in Northern Virginia, for allegedly submitting inflated claims for payment pursuant to a State Department contract.  In 2004, the State Department awarded DynCorp a contract to train civilian police forces in Iraq and provide other services related to that effort.  The government alleges that DynCorp knowingly permitted one of its main subcontractors to charge “excessive and unsubstantiated rates” for lodging, security, driving, and other services and that DynCorp included those charges in the claims for payment it submitted to the State Department.  Additionally, the DOJ alleges that DynCorp added a markup to these already excessive charges that further inflated the amount charged.

As we prepare for our upcoming holiday feasts, our thoughts go out to those who are serving our country and are unable to be with their families for the holidays.   We give thanks to them and to their families and hope they all get to enjoy a special meal wherever they may be.  In an ironic twist, one of the latest settlements in the government contracts fraud arena involves a company that agreed to supply produce to our servicepersons.  The allegations are yet another reminder of the very real impact of government fraud, which takes money from taxpayer-funded coffers and, in the case of defense contract fraud, depletes funds needed for our nation’s defense and the protection of those who serve.  We believe those who blow the whistle on government fraud are, like the men and women in the military, true Americans and our defense contract fraud law firm is proud to help.

DOJ Alleges California Company Overcharged for Produce, Violated Defense Contract, and Obstructed Investigation

Earlier this month, the Department of Justice (“DOJ”) announced that Coast Produce Company (“Coast”), a California company, agreed to pay $4 million to resolve contract fraud allegations.  The settlement applies to both civil and criminal lawsuits alleging False Claims Act (“FCA”) violations and claims Coast obstructed a federal investigation.  Coast also agreed to institute measures to ensure future compliance.  It is important to note that Coast did not admit wrongdoing and the claims in the various suits remain allegations only.