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Feb 24, 2014 by |

False Claims Case Settles for $6.5 Million

ATTORNEY NEWSLETTER

A recent federal whistleblower case has been settled for $6.5 million.  Vector Planning and Services Inc. is an information technology, program management, and consulting firm that does business with the government.  The company was accused of inflating claims for payment under Navy contracts.  The allegations were made in a False Claims Act lawsuit that was filed in the southern district of California. Vector Planning and Services Inc. is based in Virginia but has a west coast operations center in San Diego, California.  The company has agreed to pay $6.5 million to settle the allegations.  California whistleblower attorneys remind the public that false claims cost taxpayers millions of dollars each year.

The United States Department of Justice announced the settlement agreement.  An Assistant Attorney General at the Department of Justice stated that the agency will vigorously protect taxpayers from false claims.  California whistleblower attorneys think that contractors who do business with the military should do so with integrity.

Vector Planning Services Inc. has several contracts with the United States Navy.  The company provides information technology, systems engineering, and management consulting services to the Navy and its contractors. Under the terms of the contracts, the company is allowed to bill the government for indirect costs.  Overhead that can’t be assigned to a particular contract is one such indirect cost.  It was alleged that form 2005 – 2009 the company overbilled the government for its indirect costs by including direct costs that had previously been paid.  It was also alleged that claims were submitted for costs that were never incurred.  California whistleblower attorneys are glad to see that false claims are being investigated.

This case was brought by a whistleblower in a United States District court in southern California.  The False Claims Act contains a whistleblower provision that allows private individuals to bring a case on behalf of the government.  Under whistleblower provisions, the person who reports the fraud is eligible to receive a percentage of the money that is recovered.  In this case, the whistleblower will receive $1.28 million, which is approximately twenty percent of the settlement amount.

The investigation into this case was a coordinated effort involving several government agencies.  The United States Justice Department’s Civil Division, the Civil and Criminal Divisions of the United States Attorney’s Office for the Southern District of California, the Defense criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency participated in the investigation.  The claims settled by the agreement are allegations only; there has been no determination of liability.  Evans Law Firm, Inc. was not involved in this case.

Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases.  If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email info@evanslaw.com.

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