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Nov 7, 2021 by |

San Francisco Whistleblower Attorney: Government Settles Overbilling/False Claims Act Case For $1 Million


Case Alleged Higher Cost Rates Than Approved

Contract Allegedly Contained Hidden Fees

Former Employee Will Receive $157,220 Reward

Contracts for work for the federal government or the State of California typically contain very precise provisions about the costs and fees to be charged under the contract. If a contractor overbills the government by charging unapproved rates or charging undisclosed fees, such actions violate the federal False Claims Act if against the federal government or the State of California if the work is for the State.  See False Claims Act (FCA), 31 U.S.C. §§ 3729 et seq.(federal); Cal. Gov’t Code § 12650 et seq. (State of California). Cases under both statutes may be brought by individuals bringing actions on behalf of the government for the fraud.  In government contract cases, the suits may be brought by employees or other suppliers or competitors who have knowledge of a particular contractor’s illegal schemes.  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).

Contractor Settles Allegations of Overbilling

In one recently settled case,[1] a government contractor has agreed to pay $1,043,475 to resolve allegations that it violated the FCA by billing impermissible fees in contracts with a number of federal agencies.   The settlement resolves specific allegations that from January 2016 through January 2017, the contractor submitted proposals for contracts that included an unapproved cost rate to which it was not entitled. The government further alleged that on certain contracts the contractor charged federal government agencies an additional fee from its affiliates which was not disclosed in the contract. Finally, the government alleged that the defendant charged a third-party contractor an undisclosed excessive monthly storage fee which was also passed on to the government by the third-party adding to the alleged overbilling scheme.  A former employee will receive $157,220 of the settlement.

Whistleblower Rewards And Burdens

In the reported case, an employee of the allegedly defrauding contractor blew the whistle on the fraud.  While federal and State laws both prohibit retaliation against whistleblowing employees, employers continue to retaliate against whistleblowers.  But the law allows employees/relators to  fight back if the employer retaliates against them. 31 U.S.C. § 3730(h)(federal; Cal. Gov’t Code § 12653 (State).  Wrongfully discharged employees may be entitled to double back pay (with interest), reinstatement, reasonable attorneys’ fees, and reimbursement for certain costs in connection with the litigation. 31 U.S.C. § 3730(h)(2) (federal); Cal. Gov’t Code § 12653 (State). Evans Law Firm, Inc. can represent you in any action for retaliation as well as represent you in your underlying whistleblower application. 

Contact Us

Ingrid M. Evans can be reached at (415) 441-8669, or by email at <a href=””></a>.  Our toll-free number is 1-888-50EVANS (888-503-8267).  In addition to whistleblower cases under the FCA and CFCA, Ingrid handles 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 reported case in any way. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al., No. 1:19-cv-660 (E.D. Va.). 

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