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Your Partner Against Fraud

Procurement Fraud

Organizations transacting business with the U.S. government must do so in a fair and compliant manner.  The U.S. government purchases products & services from companies in virtually every industry, and also awards nearly $450 billion in Federal Assistance Agreements annually.  Funding provided for national infrastructure programs, scientific research and the social sciences are all subject to recovery by whistleblower actions under the False Claims Act.

Procurement fraud occurs when:

  • the price of a good or service is not delivered based on the negotiated contract terms;
  • companies bid on contracts under the General Services Administration and fail to comply with regulations and act honestly in their negotiations, as required by the Truth in Negotiations Act; and
  • recipients of TARP Funds or government grants waste them or don’t comply with the terms of the award.

 

Government procurement fraud settlements include:

Oracle Pays $199.5 Million to Settle False Claims Act Investigation

  • The whistleblower in this case received $40 million for helping the government uncover allegations that Oracle overbilled the U.S. government for nine years.
      • Payout is the largest every obtained by the General Services Administration under the False Claims Act.
      • “It’s more important now than ever before to make sure that taxpayer dollars are not wasted on higher prices … We will not let contractors victimize the taxpayers by hiding their best prices.”

GSA Contractor NetApp Pays $128 Million to Resolve Contract Fraud Allegations

  • This case settled allegations that NetApp failed to meet its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, including discounts offered to other customers.  The settlement relates to the sale of hardware, software and storage management services for computer network environments to government entities.
    • “Especially in these difficult economic times of stretched government budgets, we will ensure that government contractors provide the government with the price it has been promised and all of the discounts to which it is entitled.”

Maersk Line Pays $31.9 Million to Resolve False Claims Allegations for Inflated Shipping Costs to Military in Afghanistan and Iraq

  • The whistleblower in this case received $3.6 million for helping the government uncover allegations that Maersk submitted false claims in relation to cargo transportation contracts, including:
    • inflating its invoices by billing in excess of its contractual rate;
    • billing excessive late fees;
    • billing for delivery delays improperly attributed to the government;
    • billing for services that were not provided or only partially provided; and
    • failing to credit the government for rebates owed.

Mario Gabelli & Affiliate Companies Pay U.S. $130 Million for Allegedly Defrauding FCC

  • The whistleblower in this case received $32.2 million for helping the government uncover allegations that various friends and relatives of Gabelli were recruited to serve as officers of bogus small or very small businesses that existed only on paper, solely to certify that they met the FCC’s eligibility rules to participate in the auctions, so as to obtain bidding credits and/or favorable governmental financing, and to obtain the FCC’s approval to transfer licenses to third parties.