DHS Technologies LLC and subsidiary DHS Systems LLC recently agreed to pay $1.9 million to settle claims it defrauded the federal government by failing to disclose that it offered greater discounts to a commercial company as part of the renewal of its General Services Administration (GSA) Federal Supply Schedule contract in 2007.
Sharon McKinney, a…
Another chapter in the story of one of the most brazen procurement fraud schemes in United States history came to a close on Monday, December 15, 2014, when Eyak Technology LLC (“EyakTek”) and Eyak Services LLC (“ESL”) agreed to pay $2.5 million and relinquish all rights to any additional payments to resolve alleged False Claims Act and Anti-Kickback Act violations.
Between 2005 and 2011, EyakTek, an Alaska Native-owned corporation, held the Technology for Infrastructure, Geospatial, and Environmental Requirements (“TIGER”) contract, a $1 billion prime contract with the U.S. Army Corp of Engineers. It was alleged that throughout the term of the TIGER contract, EyakTek’s former director of contracts, Harold F. Babb, directed subcontracts to vendors that paid him illegal kickbacks. EyakTek and ESL, according to the DOJ, “submitted invoices to the Army Corp that included charges for work that was never performed by the subcontractors and lacked internal controls to detect the improper charges.” The government alleges that EyakTek may have been overpaid nearly $30 million as a result of the misconduct.Continue Reading Government Contractor Reaches Global Settlement to Resolve Procurement Fraud Allegations
I recently co-wrote an article with John Kelly and Lindsey Fetzer that outlined three recent cases (Leidos Holdings Inc., Boeing Company, DRS Technical Services Inc.) in which government contractors were accused of noncompliance under the False Claims Act (FCA). In the article we analyze these cases and provide guidance on what government contractors can do…
Government contractors must always be vigilant of prosecution under the False Claims Act (FCA). Charges and settlements are brought and announced in the news daily against government contractors for violations of this Act. On October 30, we published a client alert, Government Contractors Beware: Increased FCA Enforcement in Government Contracts, discussing recent cases and…
