It’s not always sunny for everyone on the Florida beaches. On January 30, 2023, the United States Attorney’s Office for the Middle District of Florida announced that Al Clint LaRoche of West Palm Beach pleaded guilty to two counts of bank fraud involving more than $1 million from the Paycheck Protection Program (PPP) loan program.
Category: Defense Industry
6th Circuit Draws a Bright Line Between Regulatory Non-Compliance and Fraudulent Inducement in a Defense Contracting Case
Takeaway: 6th Circuit provided a path forward for a common defense contracting fraud allegation.
In United States ex rel. USN4U, LLC v. Wolf Creek Federal Services the 6th Circuit overturned the lower courts dismissal of a qui tam complaint that alleged a NASA contractor knowingly inflated the prices of its labor costs in Cost Estimates for fixed price contracts.
2020 False Claims Act Recoveries: $2.2 Billion in Recoveries and Over $309M in Awards to Whistleblowers
- Over $300 million awarded to whistleblowers.
- Dip in recoveries reflects pandemic and economic challenges.
- Number of FCA filings hits a record.
- Healthcare continues to dominate FCA recoveries with kickbacks a major focus.
- Rebound in recoveries is likely as defendants regain financial footing.
On April 16, 2020, the Honorable William M. McSwain, United
States Attorney for the Eastern District of Pennsylvania, issued a sweeping
request for help in identifying companies and individuals who seek to “exploit
the devastating effects of the coronavirus pandemic for their own benefit.” The
Philadelphia United States Attorney’s Office has a long history fighting fraud.
This is the second part of a two-part article.
In the first of this two-part series, we discussed the success of the United States’ federal False Claims Act (FCA), the rise of international whistleblowers through a study of the Michael Epp case,
Supplier of Food to U.S. and Coalition Troops in Afghanistan Pays $389.300,000 in Civil Damages, Criminal Fines and Penalties; Pleads Guilty to Major Fraud, Conspiracy, Other Charges
On behalf of their client Michael Epp, the law firms Morgan Verkamp LLC (Cincinnati) and Pietragallo Gordon Alfano Bosick & Raspanti, LLP (Philadelphia) note the settlement of claims initiated by Mr. Epp alleging fraud on the part of Supreme Foodservice, the “prime vendor” of food and related items to the Department of Defense and coalition troops in Afghanistan from 2005 until at least 2009.
After a coordinated investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Colorado and the Defense Criminal Investigative Services (DCIS), First RF Corporation has agreed to pay $10 million to settle False Claim Act violations. The allegations arose over a 2005 Army contract with First RF for the sale of electronic warfare antennas.
Northrop Grumman, one of the nation’s largest defense contractors, agreed to pay $11.4 million to resolve allegations that it violated the Federal Acquisition Regulations (“FAR”) and the FCA. According to the allegations, Northrop failed to comply with its 2002 settlement agreement with the Defense Contract Management Agency (“DMCA”) by charging deferred compensation awards to key employees to its federal contracts,
British Iraq Contractor, APTx Vehicle Systems, agreed to pay $2 million to resolve allegations that it defrauded the U.S. by making false claims in a contract for the procurement of 51 vehicles for the Iraqi Police Authority. Specifically, APTx falsely submitted shipping documents which indicated that it had produced and was able to ship the 51 vehicles,
Defense subcontractor, Robbins, LLC, settled False Claims Act allegations filed by a former employee, James Brown of Temple, Georgia. Mr. Brown filed the suit alleging that Robbins used an expired ingredient, Elastomag 170, when mixing a rubber compound used in sonar nose cones for U.S. Navy ships. Goodrich subcontracted with Robbins to prepare two rubber compounds which would form the outer layers of the sonar nose cones.