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Showing 8 posts in Military & Defense Fraud.

Famous Whistleblowers and Their Impact on America

Whistleblowers have played a vital role in American history, bringing to light abuses and scandals in fields as diverse as pharmaceuticals and the military. Law enforcement agencies and government departments depend on whistleblowers to alert them to corporate and government corruption. That doesn’t always mean these entities have welcomed whistleblowers, however, especially when those people are highlighting problems within their organizations.

Fortunately, federal and state legislatures have enacted protections for whistleblowers, understanding the fundamental role they play in a democracy, and whistleblowers continue to come forward with valuable information about government and corporate misdeeds. Let's examine some of the most famous whistleblower cases and the role these courageous men and women have played in our nation's history. More

Failing to Meet Cybersecurity Requirements May Expose Company to False Claims Act Liability

Recent developments in a case heard by the U.S. District Court for the Eastern District of California shine a spotlight on the importance of cybersecurity measures for government contractors. The district court denied in part a motion to dismiss from defendants Aerojet Rocketdyne Holdings, Inc. and Aerojet Rocketdyne, Inc. (collectively, "Aerojet"), holding that the relator "plausibly pled that defendants’ alleged failure to fully disclose its noncompliance [with cybersecurity requirements] was material to the government’s decision to enter into and pay on the relevant contracts." [1] More

Recent Supreme Court Ruling Gives Whistleblowers More Time

SCOTUS delivered a unanimous opinion on May 13, 2019 affirming a Eleventh Circuit ruling that (1) the extended limitations period of up to 10 years applies to whistleblower-initiated False Claims Act lawsuits in which the government has declined to intervene and (2) whistleblowers in nonintervened cases are not "the official of the United States" referred to by the statute. This decision resolved a three circuit split. More

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Escobar decision continues to affect major FCA cases

In 2016, the Supreme Court decided the landmark FCA case Universal Health Servs., Inc. v. United States ex rel. Escobar, 136 S.Ct. 1989 (2016). Escobar resolved a circuit split over the implied false certification theory of liability under the FCA, upholding the theory as valid but tightly circumscribing its scope through a "rigorous" interpretation of the Act's materiality and scienter requirements—holding that "[a] misrepresentation about compliance with a statutory, regulatory, or contractual requirement must be material to the Government's payment decision in order to be actionable under the False Claims Act." Escobar, 136 S.Ct. at 1996. This holding continues to percolate through the federal courts, proving determinative in several recent cases of interest. More

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New York-Based Contractors Settle FCA Allegations that Company Improperly Obtained Federal Contracts for Service-Disabled Veterans

The Justice Department announced earlier this month that Alden, New York-based contractors Zoladz Construction Company Inc., Arsenal Contracting LLC, and Alliance Contracting LLC—all owned by John Zoladz of Darien, New York and David Lyons of Grand Island, New York—paid more than $3 million to settle False Claims Act allegations that they fraudulently obtained federal contracts set aside for service-disabled veteran-owned (SDVO) small businesses. More

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Defense Contractors to Pay $8 Million to Settle False Claims Act Allegations Over Defective Infrared Flares

Kilgore Flares Company and ESM Group Inc., a subcontractor, agreed to pay $8 million to settle False Claims Act allegations after selling faulty infrared countermeasure flares to the Army. Kilgore Flares produces and sells flares as well as other energetic electronic goods to the U.S. military and ESM Group makes and imports magnesium powder for a variety of industries. More

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Army Defense Contractor Fraud Case Results in $3 Million False Claims Act Settlement

Defense contractor fraud is a serious problem with potential implications for the safety of our armed forces. When defense contractors commit fraud, not only are they hurting the government and taxpayers, but they are putting the lives of military personnel at risk. More

Military Contracts in Middle East Ripe for Fraud

military fraud False Claims Act

The federal government has military troops all over the world, many of whom have been stationed in the Middle East over the past two decades. In order to assist military personnel carry out their objectives and activities, the government often enters into agreements with civilian third-party contractors. Unfortunately, in an effort to increase profits, these third-party contractors sometimes defraud the government and taxpayers. More

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