Government Contract Fraud Attorneys

Bakersfield, CA Out of JM Eagle Qui Tam Lawsuit

Posted on July 26th, 2011 No Comments

A federal judge has dismissed the City of Bakersfield, California from a qui tam lawsuit filed against plastic pipe manufacturer, JM Eagle.

According to court documents, U.S. District Judge George H. Wu granted a dismissal motion filed by the Office of the City Attorney to have its name removed from the qui tam lawsuit. The lawsuit accuses JM Eagle of knowingly selling faulty pipe to government customers. In his decision granting the dismissal motion filed by the Office of the City Attorney for the City of Bakersfield, Judge Wu wrote that the city was reassured by the fact that whatever JM Eagle pipe had been used in the city was covered by a retroactive 50-year warranty the company extended to its customers last year.

The qui tam lawsuit was originally filed by John Hendrix, a former JM Eagle employee. Hendrix claimed the company knowingly sold government entities plastic pipes which it knew were faulty and did not meet industry standards. The company has counter-sued Hendrix, claiming he was the architect of a kickback scheme to defraud JM Eagle. The company has a sworn affidavit confirming that he offered to inflate a claim in return for money to be sent directly to his home.

If you need assistance with a whistleblower lawsuit dealing with government construction fraud, please contact the Whistleblower lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

Qui Tam Lawsuit Going Ahead Against Family HealthCare

Posted on July 20th, 2011 No Comments

A qui tam lawsuit filed against Family HealthCare Network is proceeding after a federal court judge rejected a motion to dismiss the suit.

The qui tam lawsuit was filed by Sharmon Wood, a former employee of Family HealthCare Network. According to court documents, Wood worked as a grants management coordinator for the company from November 2002 until March 2004. The lawsuit claims that CEO Harry Foster, Vice President of Finance Tony Weber, and several other unnamed defendants “submitted applications for two competitive federal grants, both of which were subsequently awarded to FHCN.”

The complaint says that, in each application, the “defendants submitted detailed budget and narrative information setting forth its plan to hire additional staff and extend the operating hours at two FHCN clinics.” Wood claims, however, the defendants never intended the grant funds to be used for their stated purpose, instead applying the funds to FHCN’s ongoing operating expenses.”

The lawsuit alleges violation of the federal False Claims Act.

If you have information regarding government grant fraud, please contact a Qui Tam Attorney of Tycko & Zavareei, LLP, by calling 202-973-0900.

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PRIDE Industries to Pay $400K to Settle Qui Tam Lawsuit

Posted on July 12th, 2011 No Comments

PRIDE Industries has agreed to pay $400,000 to the federal government to resolve a qui tam lawsuit.

According to the whistleblower lawsuit, PRIDE, one of the nation’s largest employers of disabled people, knowingly submitted false claims relating to a maintenance contract at the Fort Bliss Army Base in El Paso, Texas. The contract is part of the Ability One Program, which procures contracts for goods and services that provided employment to disabled people. Under the program, contractors must ensure that 75 percent of all direct labor hours are performed by severely disabled employees.

According to officials with the Justice Department, PRIDE, between 2001 and 2010, employed a large number of temporary, non-disabled workers as part of its maintenance staff, but did not count on their hours as part of its overall ratio, meaning that PRIDE reported false ratio numbers to the National Industries of the Severely Handicapped, which oversees AbilityOne. The department also said PRIDE overcharged the Army by adding costs not allowed under the contract and by charging too much for labor.

PRIDE spokeswoman Audrey Farrington said the company cooperated with the government’s investigation. She added that the company did not admit any liability or guilt as part of the settlement.

If you have information regarding government grant fraud, please contact a Qui Tam Lawyer of Tycko & Zavareei, LLP, by calling 202-973-0900.

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UCB to Pay $34M in Qui Tam Settlement

Posted on June 22nd, 2011 No Comments

Pharmaceutical manufacturer UCB inc. has agreed to pay more than $34 million to settle a qui tam lawsuit.

According to officials with the United States Department of Justice, the qui tam lawsuit was brought by whistleblowers alleging that UCB violated the False Claims Act in its marketing of the anti-epileptic prescription drug Keppra. The drug is typically used to treat partial onset seizures in adults and children over four.

A government investigation, however, alleged that from January 1 2003 through March 31, 2005, the pharmaceutical company promoted the sale and use of Keppra for headaches, migraines, pain, bipolar, mood disorders, and anxiety. None of those uses were approved by the United States Food and Drug Administration and were therefore not eligible for reimbursement by state Medicaid programs.

Under the settlement, UCB will pay $8 million in fines and $25 million to settle civil claims.

If you have information on state and local goverment fraud, please contact the Government Contract Fraud Lawyers of Tycko & Zavareei LLP by calling 202-973-0900.

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Supreme Court: FOIA Request Can’t Be Used in False Claims Lawsuit

Posted on May 23rd, 2011 No Comments

The Supreme Court ruled this week that a Freedom of Information Act request cannot be used to trigger a qui tam lawsuit under the False Claims Act.

The court ruled 5-3 in favor of the Schindler Elevator Crop., which sought to have a qui tam case against it dismissed. The lawsuit was filed by Daniel Krik, a former Schindler employee who claimed the company had submitted hundreds of false claims for payment under its federal contracts by inflating the number of Vietnam veterans it employed. Kirck alleged that Schindler failed to meet the annual information-reporting requirements of the Vietnam Era Veteran’s Readjustment Assistance Act.

To support his allegations, Kirk submitted documents from the U.S. Labor Department which are purported to show that in some years Schindler provided no information, and in others, provided patently false information. The documents were obtained under the Freedom of Information Act.

A District Court threw out the case, concluding that the False Claims Act’s public disclosure bar prevented allegations that were based on information disclosed in a government report or investigation.

If you need assistance with a false claims act lawsuit, please contact the Government Contract Fraud Attorneys of Tycko & Zavareei, LLP, at 202-973-0900.

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$8 Million Settlement in DynCorp Qui Tam Lawsuit

Posted on April 26th, 2011 No Comments

The United States government has settled a qui tam lawsuit against DynCorp International LLC and The Sandi Group.

According to an announcement from the United States Justice Department, DynCorp has agreed to pay $7.7 million to resolve allegations that it submitted inflated claims for the construction of container camps in Iraq. The Sandi Group agreed to pay $1.01 to settle allegations that it sought reimbursement for danger pay that it falsely claimed to have given U.S. expatriate employees working in Iraq.

The qui tam lawsuit, filed in the U.S. District Court for the District of Columbia, was originally brought by two former employees of The Sandi Group. As a result of the settlement, the two whistleblowers, Drew Halldorson and Brian Evancho, will receive up to $481,710.

The lawsuit alleged that DynCorp and it’s subcontractor, The Sandi Group, submitted or caused to be submitted false claims for payment under DynCorp’s contract with the State Department to provide civilian police training in Iraq. Neither defendant admitted wrongdoing as part of the settlement.

For assistance with a Qui Tam lawsuit against a government contractor, please contact a Whistleblower Lawyer of Tycko & Zavareei, LLP, by calling 202-973-0900.

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DOJ to Join KBR Qui Tam Lawsuit

Posted on February 23rd, 2011 No Comments

The U.S. government said Wednesday it will intervene in a qui tam lawsuit filed against Kellogg Brown and Root, which claims the Army contractor defrauded American troops by submitting false claims.

According to the U.S. Department of Justice, KBR provided support services to troops in Iraq, Kuwait, and Afghanistan under LogCAP III, the third generation of the U.S. Army’s Logistics Civil Augmentation Program. The LogCAP program, which began in 1988, allows the U.S. Army to use private contractors for logistical support, food service, transportation, laundry service, recreation, and to build and run base camps. KBR received its first LogCAP contract in 1992.

Former KBR employee-turned-whistleblower James A. Brady III filed a qui tam lawsuit against the Houston-based company in 2007, which claimed the company had violated the False Claims Act because it was unable to account for materials that were billed as part of an operations and maintenance subcontract with a Turkish company, Yukel-Reysas.

The False Claims Act allows the government to recover three times its damages, plus civil penalties. The qui tam provisions of the law entitle a whistleblower, Brady, to as much as 25 percent of any funds recovered from the lawsuit.

Assistant attorney general for the Justice Department’s civil division, Tony West, announced the government’s intervening at a press conference, Wednesday, saying: “As we’ve done today, the Justice Department will take action against those whom we believe charge the taxpayers for goods and services that were not provided to American troops.”

If you have information of fraud against the government, please contact a Qui Tam Lawyer of Tycko & Zavareei, LLP, by calling 202-973-0900.

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Settlement Reached in Louis Berger Qui Tam Lawsuit

Posted on November 19th, 2010 No Comments

A multi-million dollar settlement has been reached in a qui tam lawsuit filed against one of the U.S. government’s largest contractors in Afghanistan.

According to court documents, the Justice Department has agreed to end its investigation into the allegations that contractor Louis Berger intentionally overcharged American taxpayers for work in Afghanistan. In turn, Louis Berger will pay the government a settlement that could be as high as $65 million, which includes both civil and criminal penalties.

The qui tam lawsuit was filed by a former Louis Berger employee in 2006. The whistleblower provided evidence against the firm to the U.S. Agency for International Development, which chose the company to jointly oversee more than a billion dollars in reconstruction contracts in Afghanistan. Louis Berger’s over-billing dates back to the mid 1990s.

If you are aware of fraudulent activity on the part of a company hired by the government, you may be eligible for a reward if you are able to successfully bring a Qui Tam lawsuit against the company. For more information, please contact the Qui tam lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.

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Delaware Announces Support of JM Eagle Qui Tam Lawsuit

Posted on October 12th, 2010 No Comments

The Delaware Attorney General announced support for the whistleblower lawsuit filed against JM Eagle, which alleges the manufacturer knowingly supplied inferior pipe for water and sewer systems.

The state of Delaware filed notice Friday with the federal court in Los Angeles that it was withdrawing its notice of intervention, but “would like the [whistleblower] to proceed with the action on its behalf.” The Attorney General explained that his office would not actively participate in the lawsuit because they “simply do not have the resources to litigate this case.”

The states of Nevada, Tennessee, Virginia and 47 municipalities and water districts in California have joined the qui tam lawsuit to recover damages caused by the alleged fraud. The federal government and other states have decided not to join the lawsuit, but reserve their rights to join the case at a later time.

Eric R. Havian, an attorney representing the whistleblower, said he is pleased Delaware believes his team can adequately represent its interests. “While we certainly would have welcomed Delaware’s active participation in the case, we have enough resources to pursue their claims, as they have asked us to do.” Havian said.

If you are a whistleblower and would like more information on Qui Tam lawsuits, please contact the Qui Tam Attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900.

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Whistleblowers Share of Botox Qui Tam Settlement $37.8M

Posted on September 30th, 2010 No Comments

Five Qui Tam whistleblowers in Indiana are in line for a combined $37.8 million as part of a settlement in a lawsuit filed against the makers of Botox Therapeutic.

The lawsuit alleged promotion by Allergan Inc. of its Botox Therapeutic product for unapproved medical uses, a practice which resulted in a combined $600 million in civil and criminal penalties. The attorney general for the state of Indiana announced that the state will receive approximately $636,000 from the settlement. Allergan Inc. and Allergan USA inc. agreed to pay state governments and the federal government a combined $225 million civil settlement to compensate Medicaid and Medicare.

The lawsuit was filed by five private plaintiffs who claimed off-label marketing of Botox Therapeutic for treatment of headaches, pain, and overactive bladder occurred from 2001 through 2008 and resulted in over-utilization of the product for non-covered, and medically unnecessary uses.