November 2, 2015
The Department of Justice (DOJ) has another message for anyone contemplating setting up a “sham” business to take advantage of procurement set-asides: Don’t do it. The DOJ recently filed a False Claims Act complaint against a Western New York contracting company, two owners and an employee, alleging that they submitted false claims for federal contracts intended for service-disabled,…
October 26, 2015
The Justice Department just announced that Cashman, a Building Manager for the General Services Administration (GSA), received a 4½ year sentence (16 months of which will be in custody and the balance in supervised release), for demanding and accepting bribes from government contractors and stealing property owned by the United States. Justice Department Announcement October 23, 2015. During the…
August 24, 2015
In this era of Foreign Corrupt Practices Act (FCPA) enforcement, the Department of Justice (DOJ) has a less than perfect track record of successful prosecutions against corporate defendants. As reported here previously, many of these cases are settled using resolution mechanisms that are not subject to any meaningful judicial scrutiny. Another problem – one that does not immediately…
August 24, 2015
PC Specialists Inc. d/b/a Technology Integration Group (TIG), will pay $5.9 million to settle civil allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA). TIG buys computers and other technology products for resale.
For 10 years – from 2003 to 2013 – TIG sold Dell computers to Sandia Corporation for…
August 3, 2015
Since September 2011, the Department of Justice (DOJ) has tried and failed numerous times to meet its burden of proof in Foreign Corrupt Practices Act (FCPA) enforcement actions. These cases have been referred to by some as “debacles”. Perhaps that helps explain why the DOJ recently and somewhat surprisingly announced its settlement of a significant FCPA case with Louis Berger…
July 13, 2015
Sansbury and Buechler, former employees of LB&B Associates, Inc., filed suit under the whistleblower provision of the False Claims Act for false claims allegedly made by their former employer to the government. Specifically, the former employees alleged that LB&B made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program…
June 15, 2015
Last week a federal grand jury in Puerto Rico returned a five count indictment charging three men with a multi-million dollar Service-Disabled Veteran-Owned Small Business (SDVOSB) scheme to defraud the U.S. Department of Veteran Affairs (VA). Justice Department Announcement.
The indictment alleges that from 2007 to 2014, Ivan Rosa-Colon, Jose Rosa-Colon and Torres Louis Enrique…
June 8, 2015
The General Services Administration (GSA) Office of Inspector General (OIG) recently released its semiannual Report to the Congress detailing its efforts and successes in the important work of detecting fraud and mismanagement within the GSA’s programs and operations. The report, which is required, covers the period between October 1, 2014 and March 31, 2015.
During this period, the…
June 1, 2015
On May 26, 2015, Abel Carreon entered a guilty plea to one count of mail fraud and one count of aggravated identity theft in connection with a scheme involving surety bonds and government contracts, the Department of Justice just announced. Court documents state that between 2005 and 2011 Carreon defrauded the United States and government contractors, through his company Tripartite Escrow…
May 11, 2015
Terry Jacobs stole trade secrets from his prior employer, Lambda Research, and was ordered to pay $9.4 million in damages when Lambda sued him. The story doesn’t end there. Two months later, Jacobs sued Lambda under the False Claims Act, alleging that his former employer had defrauded the Navy. The timing is suspect, n’est-ce pas? The trial court, understandably concerned…
April 20, 2015
It is always worth repeating developments that impact our readers. As we previously reported here, 2014 was an exceptional year in False Claims Act enforcement, with the Department of Justice (DOJ) announcing a record $5.69 billion in FCA recoveries. In this regard we admonished our readers that 2015 would be even worse – with a notable increase in prosecutorial scrutiny of qui tam…
March 30, 2015
On March 27th the Department of Justice announced that Lockheed Martin Corporation will pay $2 million for allegedly overbilling the government during its manufacturing of C-130 aircraft for the United States Air Force. Justice Department Press Release.
Lockheed manufactured C-130s for the U.S. Air Force from 2006 to 2013 under contracts where the Government provided Lockheed with up to…
November 2, 2015
The Department of Justice (DOJ) has another message for anyone contemplating setting up a “sham” business to take advantage of procurement set-asides: Don’t do it. The DOJ recently filed a False Claims Act complaint against a Western New York contracting company, two owners and an employee, alleging that they submitted false claims for federal contracts intended for service-disabled,…
October 26, 2015
The Justice Department just announced that Cashman, a Building Manager for the General Services Administration (GSA), received a 4½ year sentence (16 months of which will be in custody and the balance in supervised release), for demanding and accepting bribes from government contractors and stealing property owned by the United States. Justice Department Announcement October 23, 2015. During the…
August 24, 2015
In this era of Foreign Corrupt Practices Act (FCPA) enforcement, the Department of Justice (DOJ) has a less than perfect track record of successful prosecutions against corporate defendants. As reported here previously, many of these cases are settled using resolution mechanisms that are not subject to any meaningful judicial scrutiny. Another problem – one that does not immediately…
August 24, 2015
PC Specialists Inc. d/b/a Technology Integration Group (TIG), will pay $5.9 million to settle civil allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA). TIG buys computers and other technology products for resale.
For 10 years – from 2003 to 2013 – TIG sold Dell computers to Sandia Corporation for…
August 3, 2015
Since September 2011, the Department of Justice (DOJ) has tried and failed numerous times to meet its burden of proof in Foreign Corrupt Practices Act (FCPA) enforcement actions. These cases have been referred to by some as “debacles”. Perhaps that helps explain why the DOJ recently and somewhat surprisingly announced its settlement of a significant FCPA case with Louis Berger…
July 13, 2015
Sansbury and Buechler, former employees of LB&B Associates, Inc., filed suit under the whistleblower provision of the False Claims Act for false claims allegedly made by their former employer to the government. Specifically, the former employees alleged that LB&B made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program…
June 15, 2015
Last week a federal grand jury in Puerto Rico returned a five count indictment charging three men with a multi-million dollar Service-Disabled Veteran-Owned Small Business (SDVOSB) scheme to defraud the U.S. Department of Veteran Affairs (VA). Justice Department Announcement.
The indictment alleges that from 2007 to 2014, Ivan Rosa-Colon, Jose Rosa-Colon and Torres Louis Enrique…
June 8, 2015
The General Services Administration (GSA) Office of Inspector General (OIG) recently released its semiannual Report to the Congress detailing its efforts and successes in the important work of detecting fraud and mismanagement within the GSA’s programs and operations. The report, which is required, covers the period between October 1, 2014 and March 31, 2015.
During this period, the…
June 1, 2015
On May 26, 2015, Abel Carreon entered a guilty plea to one count of mail fraud and one count of aggravated identity theft in connection with a scheme involving surety bonds and government contracts, the Department of Justice just announced. Court documents state that between 2005 and 2011 Carreon defrauded the United States and government contractors, through his company Tripartite Escrow…
May 11, 2015
Terry Jacobs stole trade secrets from his prior employer, Lambda Research, and was ordered to pay $9.4 million in damages when Lambda sued him. The story doesn’t end there. Two months later, Jacobs sued Lambda under the False Claims Act, alleging that his former employer had defrauded the Navy. The timing is suspect, n’est-ce pas? The trial court, understandably concerned…
April 20, 2015
It is always worth repeating developments that impact our readers. As we previously reported here, 2014 was an exceptional year in False Claims Act enforcement, with the Department of Justice (DOJ) announcing a record $5.69 billion in FCA recoveries. In this regard we admonished our readers that 2015 would be even worse – with a notable increase in prosecutorial scrutiny of qui tam…
March 30, 2015
On March 27th the Department of Justice announced that Lockheed Martin Corporation will pay $2 million for allegedly overbilling the government during its manufacturing of C-130 aircraft for the United States Air Force. Justice Department Press Release.
Lockheed manufactured C-130s for the U.S. Air Force from 2006 to 2013 under contracts where the Government provided Lockheed with up to…
