The jury trial in the civil lawsuit against Blackwater (now Xe Services), “hangs by a thread,” U.S. District Court Judge T.S. Ellis III stated, after throwing out several claims against the company. The case was initially brought in 2008 under the False Claims Act by Melan Davis, a former Blackwater employee.
A Kuwaiti food supplier could face charges of defrauding the U.S. government as federal prosecutors investigate claims against The Public Warehouse Company, also known as Agility.
U.S. District Court Judge Royce Lamberth has ruled against the largest private contractor in Iraq and Afghanistan in a lawsuit brought by the U.S. government. Houston based contractor KBR Inc.’s request to dismiss a $100 million lawsuit involving false claims for private security in Iraq was denied on August 3.
The number of Qui Tam false claims cases has grown by double digits each year, since amendments were made to the False Claims Act (FCA) in 1986. Approximately 7,200 Qui Tam cases have been filed since 1987, according to the U.S. Department of Justice (DOJ).
Between January 2009 and June 2011, the DOJ recovered more than $7.3 billion in civil settlements and judgments under the False Claims Act. Assistant Attorney General for the Civil Division Tony West stated that the DOJ “has never been more aggressive—or more successful—in the anti-fraud battle as it has in the last two years.” State recoveries are also reaching record-highs and looking to pass or amend aggressive false claims statutes patterned after the FCA.
Home Depot was sued for false claims for selling Chinese goods to the federal government in violation of the Buy American Act. That act requires all materials used in construction of public projects to originate in the United States or “designated countries.” GSA contracts with Home Depot authorize government agencies to purchase thousands of products from Home Depot’s designated website while many of the products on the website are actually manufactured in China and other non-designated countries.
A former US Army Sergeant pleaded guilty to theft of US government equipment during time he spent in Iraq training the Iraqi Army units. Robert Ashley Nelson pleaded guilty to one count of conspiracy to steal public property for his role in stealing eight generators from an Army base, which he then sold for approximately $44,830.
The US Attorney for the Southern District of New York announced the filing and settlement of a false claims act lawsuit against the administrator of the US Department of State’s Fulbright Scholar’s program. The US Attorney alleged that over an 8-year period, the administrator, the Institute of International Education (IIE) did not comply with grant requirements and repeatedly made false claims for payments by inflating its labor costs incurred.
The New York Times reports that hospice care is under the microscope for care and treatment that may not be necessary. The amount of money spent on hospice care grew from $2.9 billion in 2000 to more than $12 billion in 2009. The increase is attributable to Medicare regulations some years ago that demonstrated that allowed for hospice care as a cost-effective way of caring for individual near the end of life.
On June 13, 2011, it was announced that the U.S. Department of Justice would intervene in a False Claims Act suit against Eli Hage Korban, M.D., and two Tennessee hospitals, Jackson-Medicine Country General Hospital and Regional Hospital of Jackson. The suit is before Judge Bernice Bouie Donald, U.S.
If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.