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 29, 2013
We previously reported on two cases involving fraud against the Government in connection with contracting and loan guarantee programs – the case of Donald and Sherri Brewer and the case of Sandy Oh. The defendants in each of these cases were recently sentenced, providing yet another reminder (if one were needed) that defrauding the Government comes with serious – and sometimes unique…
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…
July 1, 2013
The Armed Services Board of Contract Appeals (“ASBCA”) recently held a contract void ab initio for fraud in the inducement where the contractor fraudulently misrepresented its relationship with a proposed subcontractor holding certifications critical to the contractor’s eligibility for award. Servicios y Obras Isetan S.L., ASBCA No. 57584 (April 5, 2013).
The case involved a firm…
May 15, 2013
In a recent case in Texas, a federal jury convicted Donald Brewer, his wife Sherri Brewer, and James McKinney on multiple fraud counts for submitting false invoices under information technology contracts with the Air Force. The Air Force Medical Support Agency purchased information technology systems for Air Force hospitals and medical treatment facilities through its Medical Systems…
May 8, 2013
A recent case in federal court in Maryland provides an additional reminder (if any were needed) that fraud in connection with small business activities does not pay. In United States v. Oh, No. 11-CR-00600 (D. Md.), a Virginia attorney plead guilty to conspiracy to commit bank fraud and money laundering in connection with her role in falsifying records to secure loans from the Small…
April 26, 2013
In a recent case in federal court in California, a self-described “Godfather” of Camp Pendleton has been charged with accepting bribes on a flooring contract at the Camp. In United States v. Cervantes, No. 13-CR-01345 (C.D. Cal. filed Mar. 29, 2013) (see copy of Complaint here), the Defendant allegedly accepted a $40,000 bribe in connection with a $4 million flooring contract.
According to…
April 8, 2013
In an attempt to ensure state false claims legislation keeps up with recent amendments to the federal False Claims Act (FCA), the Office of Inspector General of the Department of Health and Human Services (DHHS OIG) recently updated its guidelines for determining whether a state’s false claims act qualifies for monetary incentives provided under section 1909 of the Social Security Act.
The…
March 21, 2013
In United States v. Garst, No. 12-40109-01-JAR (D. Kansas), an Army veteran and private contractor in Afghanistan was sentenced to 30 months in prison, one year of supervised release, and a $52,117 fine for his role in a kickback scheme with an Afghan contracting company.
Donald Garst, 51, who was in the Army for 4 years and the National Guard for 23 years, was a manager for a private…
February 14, 2013
On January 30, 2013 Federal prosecutors asked a judge in Louisiana to require BP LLC’s lawyers to produce documents from the lawyers’ files relating to admitted fraudulent statements made by BP representatives to Congress and to the Securities and Exchange Commission. The relevant statements concern the rate oil was flowing into the Gulf of Mexico during the 2010 oil platform…
February 6, 2013
In United States v. Jill Ann Charpia, No. 12-CR-00704 (S.D. Tex. 2012), a former Air Force officer was sentenced to 30 months in prison, three years of supervised release and $920,000 in restitution for falsely billing $1.27 million to the Government regarding Iraq reconstruction contracts. Charpia was the co-owner of Sourcing Specialist LLC. The company was awarded a contract to provide…
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 29, 2013
We previously reported on two cases involving fraud against the Government in connection with contracting and loan guarantee programs – the case of Donald and Sherri Brewer and the case of Sandy Oh. The defendants in each of these cases were recently sentenced, providing yet another reminder (if one were needed) that defrauding the Government comes with serious – and sometimes unique…
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…
July 1, 2013
The Armed Services Board of Contract Appeals (“ASBCA”) recently held a contract void ab initio for fraud in the inducement where the contractor fraudulently misrepresented its relationship with a proposed subcontractor holding certifications critical to the contractor’s eligibility for award. Servicios y Obras Isetan S.L., ASBCA No. 57584 (April 5, 2013).
The case involved a firm…
May 15, 2013
In a recent case in Texas, a federal jury convicted Donald Brewer, his wife Sherri Brewer, and James McKinney on multiple fraud counts for submitting false invoices under information technology contracts with the Air Force. The Air Force Medical Support Agency purchased information technology systems for Air Force hospitals and medical treatment facilities through its Medical Systems…
May 8, 2013
A recent case in federal court in Maryland provides an additional reminder (if any were needed) that fraud in connection with small business activities does not pay. In United States v. Oh, No. 11-CR-00600 (D. Md.), a Virginia attorney plead guilty to conspiracy to commit bank fraud and money laundering in connection with her role in falsifying records to secure loans from the Small…
April 26, 2013
In a recent case in federal court in California, a self-described “Godfather” of Camp Pendleton has been charged with accepting bribes on a flooring contract at the Camp. In United States v. Cervantes, No. 13-CR-01345 (C.D. Cal. filed Mar. 29, 2013) (see copy of Complaint here), the Defendant allegedly accepted a $40,000 bribe in connection with a $4 million flooring contract.
According to…
April 8, 2013
In an attempt to ensure state false claims legislation keeps up with recent amendments to the federal False Claims Act (FCA), the Office of Inspector General of the Department of Health and Human Services (DHHS OIG) recently updated its guidelines for determining whether a state’s false claims act qualifies for monetary incentives provided under section 1909 of the Social Security Act.
The…
March 21, 2013
In United States v. Garst, No. 12-40109-01-JAR (D. Kansas), an Army veteran and private contractor in Afghanistan was sentenced to 30 months in prison, one year of supervised release, and a $52,117 fine for his role in a kickback scheme with an Afghan contracting company.
Donald Garst, 51, who was in the Army for 4 years and the National Guard for 23 years, was a manager for a private…
February 14, 2013
On January 30, 2013 Federal prosecutors asked a judge in Louisiana to require BP LLC’s lawyers to produce documents from the lawyers’ files relating to admitted fraudulent statements made by BP representatives to Congress and to the Securities and Exchange Commission. The relevant statements concern the rate oil was flowing into the Gulf of Mexico during the 2010 oil platform…
February 6, 2013
In United States v. Jill Ann Charpia, No. 12-CR-00704 (S.D. Tex. 2012), a former Air Force officer was sentenced to 30 months in prison, three years of supervised release and $920,000 in restitution for falsely billing $1.27 million to the Government regarding Iraq reconstruction contracts. Charpia was the co-owner of Sourcing Specialist LLC. The company was awarded a contract to provide…
