February 12, 2014
In a recent press release, the Justice Department announced that it secured $3.8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending September 30, 2013. The Department stated it was “the second largest annual recovery of its type in history.”
Although health care fraud continued to be the dominant area of recovery for the…
November 18, 2013
In a recent case, United States v. Precision Image Corporation, Inc. and Chih-Kwanh Hwa, No.13-CR-00226, U.S. District Court for the Eastern District of Washington, the owner of a circuit board supplier was sentenced to prison for selling Taiwanese-manufactured circuit boards to the U.S. Navy. Chih-Kwanh Hwa, Precision Image’s owner, successfully bid on $180,034 of Navy contracts for circuit…
October 14, 2013
The government recently settled a qui tam lawsuit against Tremco, Inc., a roofing restoration and supply company that is a subsidiary of RPM International, Inc., a multi-national holding company headquartered in Medina, Ohio. In United States, ex. rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc., No. 10-CV-1192 (D.D.C. filed July 15, 2010) (complaint linked here), the relator…
September 4, 2013
Northwestern University (“Northwestern”) recently settled a federal False Claims Act (“FCA”) case brought by one of its former employees for nearly $3 million. See United States ex rel. Melissa Theis v. Northwestern Univ., et al., No. 09-C-1943 (N.D.Ill. July 30, 2013).
Northwestern receives significant grant funding from the National Institutes of Health (“NIH”) for research conducted by…
August 7, 2013
More and more, government contractors have their competitors to blame when they find themselves on the wrong end of government enforcement efforts. Two recent cases involving General Services Administration (GSA) contractors underscore the dangers of non-compliance in today’s government marketplace – and how easily your business rivals can become whistleblowers.
In the first, contractor…
August 7, 2013
In a case of first impression, the Fifth Circuit held that a specific civil provision of the Anti-Kickback Act extends vicarious liability to an employer for the acts of its employees. In United States ex. rel. Vavra v. Kellogg Brown & Root, No. 12-40447 (5th Cir. 2013), the Court reversed a decision by the District Court which held that the Act does not allow the government to allege…
July 23, 2013
The Small Business Administration (SBA) recently issued a final rule strengthening penalties for small businesses that misrepresent their size and/or special socioeconomic status. As previously explained here, the proposed rule adopted the aggressive approach manifest in the small business size and status integrity provisions of the Small Business Jobs Act of 2010. While the new rule largely…
July 17, 2013
In a recent federal criminal case, a former GSA Assistant Property Manager pled guilty to false statements and witness tampering in connection with a facilities contract for the Lloyd D. George federal Courthouse in Las Vegas, Nevada. In United States v. Underhill, No. 12-CR-00301, the defendant, Steven Underhill, had a relationship with a woman named “L.V.” (undisclosed in court documents…
July 12, 2013
Over the years, Congress has enacted many whistleblower protection statutes aimed at specific industries to encourage employees in those industries to report fraud, waste, and abuse. All federal government contractors – at every level - should be aware of the newest whistleblower protection statute that went into effect on July 1, 2013. The statute, 41 U.S.C. § 4712, applies to all…
July 10, 2013
In a recent federal court decision, United States ex rel. Schroeder v. CH2M Hill, No. CV-09-5038, (E.D. Wash, May 13, 2013), the Court granted the government’s motion to dismiss a qui tam relator, Carl Schroeder, because Schroeder pled guilty to conspiracy to defraud the government with respect to the exact same overbilling scheme on which his False Claims Act qui tam action was based.
The Court…
May 10, 2013
When faced with a $95,115 Contract Disputes Act certified claim for improper cancellation of a purchase order for printed circuit cards, the United States Government didn’t just defend the claim – it went on the offensive by filing a False Claims Act (FCA) claim against the contractor. In Ulysses, Inc. v. United States, No. 06-436C (Fed. Cl. April 30, 2013), the Court of Federal Claims…
April 29, 2013
We've all known for a long time now that institutions of higher education are exposed to lawsuits, including those brought by whistleblowers and the Department of Justice (DOJ) under the False Claims Act (FCA). The upward trend in these cases that began a few years ago is continuing. While healthcare related claims continue to lead the way, representing more than half of the FCA…
February 12, 2014
In a recent press release, the Justice Department announced that it secured $3.8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending September 30, 2013. The Department stated it was “the second largest annual recovery of its type in history.”
Although health care fraud continued to be the dominant area of recovery for the…
November 18, 2013
In a recent case, United States v. Precision Image Corporation, Inc. and Chih-Kwanh Hwa, No.13-CR-00226, U.S. District Court for the Eastern District of Washington, the owner of a circuit board supplier was sentenced to prison for selling Taiwanese-manufactured circuit boards to the U.S. Navy. Chih-Kwanh Hwa, Precision Image’s owner, successfully bid on $180,034 of Navy contracts for circuit…
October 14, 2013
The government recently settled a qui tam lawsuit against Tremco, Inc., a roofing restoration and supply company that is a subsidiary of RPM International, Inc., a multi-national holding company headquartered in Medina, Ohio. In United States, ex. rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc., No. 10-CV-1192 (D.D.C. filed July 15, 2010) (complaint linked here), the relator…
September 4, 2013
Northwestern University (“Northwestern”) recently settled a federal False Claims Act (“FCA”) case brought by one of its former employees for nearly $3 million. See United States ex rel. Melissa Theis v. Northwestern Univ., et al., No. 09-C-1943 (N.D.Ill. July 30, 2013).
Northwestern receives significant grant funding from the National Institutes of Health (“NIH”) for research conducted by…
August 7, 2013
More and more, government contractors have their competitors to blame when they find themselves on the wrong end of government enforcement efforts. Two recent cases involving General Services Administration (GSA) contractors underscore the dangers of non-compliance in today’s government marketplace – and how easily your business rivals can become whistleblowers.
In the first, contractor…
August 7, 2013
In a case of first impression, the Fifth Circuit held that a specific civil provision of the Anti-Kickback Act extends vicarious liability to an employer for the acts of its employees. In United States ex. rel. Vavra v. Kellogg Brown & Root, No. 12-40447 (5th Cir. 2013), the Court reversed a decision by the District Court which held that the Act does not allow the government to allege…
July 23, 2013
The Small Business Administration (SBA) recently issued a final rule strengthening penalties for small businesses that misrepresent their size and/or special socioeconomic status. As previously explained here, the proposed rule adopted the aggressive approach manifest in the small business size and status integrity provisions of the Small Business Jobs Act of 2010. While the new rule largely…
July 17, 2013
In a recent federal criminal case, a former GSA Assistant Property Manager pled guilty to false statements and witness tampering in connection with a facilities contract for the Lloyd D. George federal Courthouse in Las Vegas, Nevada. In United States v. Underhill, No. 12-CR-00301, the defendant, Steven Underhill, had a relationship with a woman named “L.V.” (undisclosed in court documents…
July 12, 2013
Over the years, Congress has enacted many whistleblower protection statutes aimed at specific industries to encourage employees in those industries to report fraud, waste, and abuse. All federal government contractors – at every level - should be aware of the newest whistleblower protection statute that went into effect on July 1, 2013. The statute, 41 U.S.C. § 4712, applies to all…
July 10, 2013
In a recent federal court decision, United States ex rel. Schroeder v. CH2M Hill, No. CV-09-5038, (E.D. Wash, May 13, 2013), the Court granted the government’s motion to dismiss a qui tam relator, Carl Schroeder, because Schroeder pled guilty to conspiracy to defraud the government with respect to the exact same overbilling scheme on which his False Claims Act qui tam action was based.
The Court…
May 10, 2013
When faced with a $95,115 Contract Disputes Act certified claim for improper cancellation of a purchase order for printed circuit cards, the United States Government didn’t just defend the claim – it went on the offensive by filing a False Claims Act (FCA) claim against the contractor. In Ulysses, Inc. v. United States, No. 06-436C (Fed. Cl. April 30, 2013), the Court of Federal Claims…
April 29, 2013
We've all known for a long time now that institutions of higher education are exposed to lawsuits, including those brought by whistleblowers and the Department of Justice (DOJ) under the False Claims Act (FCA). The upward trend in these cases that began a few years ago is continuing. While healthcare related claims continue to lead the way, representing more than half of the FCA…
