ATTORNEY NEWSLETTER
Defense Supplier Settle Allegations Of Submitting False Data
Alleged Violations Of False Claims Act and Truth In Negotiations Act
How Whistleblower Cases Work
Government contracts often include strict rules regarding product specifications which contractors are obligated to meet in order to qualify for payment. Knowing failure to fulfill contractual obligations or falsely representing compliance with government regulations may violate the False Claims Act. See False Claims Act (FCA), 31 U.S.C. §§ 3729 et seq. Government contractors and suppliers must also comply with the terms of the Truth In Negotiations Act, 10 U.S.C. §§ 3701-3708; 41 U.S.C. §§ 3501-3508. Individuals with knowledge of this fraud in negotiations or contract performance, often employees or former employees of the offending contractor, may bring an action (called a “qui tam” case) on behalf of the government for the fraud perpetrated against the government. Rewards for the individuals (referred to as “relators”) bringing the actions can equal 15-30% of the amount recovered. 31 U.S.C. § 3730(d). If you have credible information for a false claims whistleblower case on behalf of the federal government in San Francisco or elsewhere in California, call us today at (415)441-8669 and we can help. Our toll-free number is 1-888-50EVANS (888-503-8267).
Recent Settlement[1]
The Us. Department of Justice recently announced that a supplier to the Defense Department has agreed to pay the United States $62 million to settle allegations that one of its divisions violated the False Claims Act and the Truth In Negotiations Act by knowingly making false statements and submitting and causing the submission of false claims by failing to disclose accurate, current, and complete cost or pricing data for communications equipment sold to various Department of Defense agencies, including the Air Force, Army, and Navy, and other government agencies. The defendant manufactures communications equipment to operate unmanned vehicles and retrieve data and visuals for military operations and intelligence. The United States has purchased the equipment through sole source, fixed price contracts.
The settlement resolves allegations that, for an eight-year period, the company failed to disclose accurate, complete, and current cost or pricing data relating to the labor, material, and other costs for manufacturing the products sold to the government, and each of their versions and kits, and falsely certified that it had done so in dozens of government contract proposals. The United States alleged that this conduct violated the Truth in Negotiations Act, which requires a contractor to provide to the government at the time of an agreement on price the most current, complete, and accurate facts that could reasonably be expected to affect price negotiations significantly. The United States further alleged that, by failing to disclose accurate, complete, and current cost or pricing data, the company knowingly submitted or caused the submission of false claims for payments in violation of the False Claims Act.
“The Department will vigorously pursue federal contractors who fail to provide truthful information during contract negotiations to ensure federal agencies do not overpay for products and services.” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division.
Starting A Qui Tam Action
Any False Claims Act whistleblower case begins by a relator filing a complaint under seal in the federal court usually for the United States District Court for the district where defendant is located or does business. At the same time, the relator submits a disclosure to the DOJ outlining the material evidence the relator has of the alleged false claims. 31 U.S.C. § 3730(b). The seal period of the complaint lasts 60 days during which the DOJ investigates the claims. 31 U.S.C. § 3730(b)(2). (If necessary, the government can, and often does, extend the 60-day period during which the allegations are kept under seal.) If the government decides to intervene in the case, the government essentially takes over the litigation. 31 U.S.C. § 3730(c)(1). If the government declines to intervene, the relator may proceed with the litigation on his or her own. 31 U.S.C. § 3730(c)(3).
Contact Us
If you have credible information of government fraud in San Francisco or elsewhere in California, call Ingrid M. Evans at (415) 441-8669, or toll-free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. In addition to FCA and CFCA whistleblower cases, Ingrid and Evans Law Firm, Inc. also handle bank fraud whistleblower cases under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program.
[1] Evans Law Firm, Inc. was not involved in the case in any way.
