Government Contract Cases


Advanced C4 Solutions Pays $4.535M in SPAWAR Defense Contractor Fraud Settlement

Advanced C4 Solutions Pays $4.535M in SPAWAR Defense Contractor Fraud Settlement

Florida-based Advanced C4 Solutions, Inc. agreed pay $4.535 million to resolve claims that it violated the federal False Claims Act by knowingly overbilling the government for work performed under an Air Force technology contract at Maryland’s Joint Base Andrews.

Defendants Andrew Bennett and James Shank pleaded guilty to conspiracy to commit wire fraud, according to Department of Justice information.

Feds Say Contractors Charge U.S. For Nonexistent Labor Hours, Ineligible Job Rates

The settlement agreement stems from alleged activities beginning in June 2010, when the U.S. Navy’s Space and Warfare Systems Command (SPAWAR) granted Advanced C4 Solutions a contract titled “DO 27” to perform labor and project management services for an Air Force technology project....


Energy & Process Corporation Facing Substandard Materials & Fake Certs at Nuclear Site Lawsuit

Energy & Process Corporation Facing Substandard Materials & Fake Certs at Nuclear Site Lawsuit

The government has joined a False Claims Act lawsuit against Energy & Process Corporation (E&P), which was filed by whistleblower Deborah Cook. According to the qui tam (False Claims Act whistleblower) lawsuit, E&P supplied defective reinforcement bar (rebar) for the construction of a nuclear processing  facility in the Department of Energy’s Savannah River site in South Carolina. 

Georgia-based E&P received millions of dollars from the federal government to perform critical safety work on rebar that was used to build the Savannah River Site facility, also known as the MOX Facility, which was designed to process nuclear waste. As the lawsuit states, because of the hazardous nature of the radioactive material, the facility was “required to be built to withstand earthquakes.”...


Global Top 10 False Claims Act Offender: Boeing – Government Contract Schemes

Global Top 10 False Claims Act Offender: Boeing – Government Contract Schemes

In October 2015, whistleblower James Thomas Webb received a $3,115,000 cash award after filing a False Claims Act (FCA) lawsuit alleging Boeing Company submitted false claims for labor charges on C-17 maintenance contracts. Boeing paid a total of $18,115,000 to settle the allegations.

Mr. Webb is not the only Boeing employee who has brought a whistleblower lawsuit against the world’s largest commercial jetliner and military aircraft producer. The Project on Government Oversight’s Federal Contractor Misconduct Database reports 66 instances of misconduct since 1995. Boeing has racked up over $1,456,789,469 in penalties in that time. For decades, Boeing has continued to violate U.S. rules and regulations, wasting taxpayer dollars and putting our nation’s citizens and armed forces at risk....


Defense Contractor Cybersecurity Breaches Bring Wave of Cyber Whistleblower Opportunities

Defense Contractor Cybersecurity Breaches Bring Wave of Cyber Whistleblower Opportunities

Failure to report cyberattacks among Department of Defense (DOD) contractors and subcontractors means big whistleblower opportunities for IT professionals and other defense contractor employees. Cyber hacking and cybersecurity breaches are widespread, and a whole new category of cyber whistleblower claims are cropping up around them under the federal False Claims Act.

Cybercrime Could Cost U.S. Companies $2 Trillion by 2019

Cybercrime cost U.S. companies approximately $500 billion in 2015. This number could quadruple to $2 trillion by 2019. Cyber hacks into the computer networks of private vendors that supply aircraft, ammunition, radar technology and specialized software to all areas of our U.S. defense agencies present a significant danger to national security and members of our armed forces. Because of this, federal rules and regulations on cybersecurity continue to tighten....


Lance Armstrong a Dope Dealer and Liar Per US Government Filing in Whistleblower Lawsuit

Lance Armstrong a Dope Dealer and Liar Per US Government Filing in Whistleblower Lawsuit

Earlier this year, Lance Armstrong’s attorneys filed for Summary Judgment, which is a request for a an immediate favorable judgment to be issued without a trial. The matter at hand was a whistleblower lawsuit initiated in 2010 by one of Armstrong’s teammates, which claimed that Armstrong had defrauded the government by doping while being sponsored by the US Postal Service.

In April, Armstrong’s legal defense team claimed that, since the cyclist had not personally signed any of the sponsorship contracts, he couldn’t be held liable, and that USPS (United States Postal Service) had actually benefitted from the agreement in spite of the fallen athlete’s doping.

The saga of Lance Armstrong’s use of performance enhancing drugs has already made it into a movie by renowned director Stephen Frears (The Program, 2015), and it keeps attracting media attention. Frears, who did extensive research to make the film, has commented that doping is surprisingly common among top cyclists. But that is apparently not enough of an excuse for the US Justice Department, which joined in to prosecute the whistleblower lawsuit in 2013....


Feds Collect $5.8M for SBA Contract Scam – Competitor Scores Whistleblower Award

Feds Collect $5.8M for SBA Contract Scam – Competitor Scores Whistleblower Award

Five Gardena, California tech companies have agreed to pay over $5.8 million to resolve allegations they obtained small business government contracts through misrepresentation and fraud, thereby violating the federal False Claims Act (FCA).

A competitor company and the competitor’s managing member Anthony Colangelo will split a $1.4 million whistleblower award for filing the initial claim that exposed the FCA violations, the U.S. Justice Department announced Wednesday.

Minburn Technology’s Anthony Colangelo Reports En Pointe Gov. Inc. Using Whistleblower Law

Virginia-based Minburn Technology Group and its managing member Anthony Colangelo brought the original whistleblower claim in 2014. The claim alleged that, from 2011 to 2014, En Pointe Gov. Inc., En Pointe Technologies Inc., En Pointe Technologies Sales Inc., Dominguez East Holdings LLC and Din Global Corp. falsely represented a company called En Pointe Gov. Inc. (“En Pointe”) as a small business in order to obtain government-funded contracts specifically set aside to aid small businesses....


Mountain States Settles Whistleblower's Allegations of DBE Fraud at $2.25M

Mountain States Settles Whistleblower's Allegations of DBE Fraud at $2.25M

Tennessee highway building firm, Mountain States Contractors, has agreed to pay $2.25 million to the U.S. government this week to resolve allegations they violated the False Claims Act (FCA) by falsely claiming to have subcontracted work to a minority-owned business. Whistleblower Ron Meadows, filed the initial lawsuit that triggered the investigation of Mountain States. The U.S. Department of Justice reports Meadows will collect a $500,000 cash whistleblower award as allowed under the FCA for his efforts in putting a stop to the contractor fraud scheme.

Whistleblower Ron Meadows Alleges Mountain States DBE

Meadows’ March 2012 whistleblower lawsuit claimed that the Jones Brothers affiliate, Mountain States, violated the FCA when it allegedly lied about subcontracting work out to minority-owned G&M Associates to qualify for federal funding under the United States Department of Transportation’s Disadvantaged Business Enterprise (DBE) program....


Menlo and Estes to Pay $13 Million to Resolve False Claims Act Overbilling Allegations

Menlo Logistics and its subcontractor Estes have agreed to pay the government $13 million to settle a False Claims Act lawsuit. The companies had allegedly overcharged the government in a Defense Department contract for freight transportation under the Defense Transportation Coordination Initiative. 

According to the lawsuit, Menlo and its subcontractor had, among other things, billed the government for air shipping when freight had actually been transported by truck.

Richard Ricks & Marcelo Cuellar Reported as Whistleblowers - $2.86M Bounty

The alleged overbilling was brought to light by whistleblowers Richard Ricks (58) and Marcelo Cuellar (30) and it goes back as far as 2007. Besides charging inappropriate air freight rates, the defendants had allegedly created other fraudulent surcharges, such as oversize rates. The whistleblowers became aware of the alleged scheme while Cuellar was working at Estes’ defense distribution depot in Tracy, California, and Ricks was CEO of Menlo subcontractor EXP Logistics Solutions.  Cuellar was fired by Estes two years after the investigation began....


US Postal Service v Lance Armstrong – Both Sides Seek Immediate Partial Wins in Whistleblower Case

The government's case against Lance Armstrong took an interesting turn this last week, when both parties filed for Summary Judgment in the case against Lance Armstrong and his cycling team, which is a motion for the judge to rule on key points of a lawsuit without the need to take them to trial.

The fallen sports icon is the sole visible defendant in the case, as the lawsuit also involves a defunct company, Tailwind Sports, which was the cycling team’s owner, and a Belgian national, cycling team director Johan Bruyneel, who is not living in the US.

Armstrong finally confessed to having taken performance enhancing drugs in 2013, after a long period of denials.

Whistleblower Floyd Landis Set off the $100 Million False Claims Case

The lawsuit arose from claims by whistleblower Floyd Landis., who was a member of Armstrong’s team. The federal government is looking to recover the amount of $32,267,279.85, which was paid to the cycling team in a sponsorship contract with the U.S. Postal Service....


Ameri-Source Graphite Electrode Antidumping Suit Nets $3M Taxpayers

Ameri-Source Graphite Electrode Antidumping Suit Nets $3M Taxpayers

In yet another antidumping U.S. False Claims Act lawsuit where a company throws its dishonest competitor under the bus, electrode manufacturer, Graphite Electrode Sales Inc. filed a qui tam claim against rival Ameri-Source for allegedly scheming to avoid paying import duties on its Chinese-made graphite electrodes.

Ameri-Source agreed to pay $3 million to resolve the allegations and Graphite Electrode Sales was granted a $480K reward for filing the whistleblower claim that exposed the fraudulent acts.

Whistleblower Graphite Electrode Alleges Customs Duty Evasion via Misrepresentation

Graphite Electrode became suspicious of Ameri-Source when it learned that, between December of 2009 and March of 2012, the Pennsylvania-based rival company allegedly evaded duties on 15 shipments of small-diameter graphite electrodes from China by knowingly misrepresenting that they were duty free large-diameter electrodes.  Graphite Electrode filed a whistleblower lawsuit under the qui tam provision of the FCA in 2013 and the U.S. government opted to intervene (took over prosecution of the whistleblower case) in February 2016....