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Articles Posted in Defense Industry Fraud

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Defense Contractors to Repay Government Close to $20 Million for Alleged Fraud

The U.S. Department of Justice announced yesterday that defense contractor DRS Technical Services Inc. (“DRS”) has agreed to pay $13.7 million to settle allegations that it violated the False Claims Act by overbilling the government for work performed by employees who in fact lacked the requisite job qualifications outlined in…

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Government Allowed to Seek Enhanced Penalties for Illegal Kickbacks in its False Claims Act Case Against KBR

On Friday, the U.S. Circuit Court of Appeals for the Fifth Circuit overturned a federal trial court decision and ruled that the government can seek enhanced penalties against private military contractor Kellogg Brown & Root, Inc. (“KBR”) in connection with its employees’ alleged violations of the Anti-Kickback Act, a statute…

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Alcatel-Lucent Agrees to Pay $4.2 Million to Resolve False Claims Act Allegations

A subsidiary of Alcatel-Lucent, Lucent Technologies World Services Inc. (“LTWSI”), has agreed to a $4.2 million settlement to resolve all allegations brought in a False Claims Act (“FCA”) suit against the company. Alcatel Lucent is a French global telecommunications equipment corporation, and LTWSI contracts with the U.S. Department of Defense…

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Defense Contractor Shifts Overhead Costs to Government, Settles False Claims Act Case for $69.3M

The Louis Berger Group settled a False Claims Act case for $69.3 million, after receiving contracts for reconstruction projects in both Iraq and Afghanistan with both the United States Agency for International Development (USAID) and the Department of Defense. The suit alleged that LBG intentionally overbilled the government through an…

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Fraud Case Advances, Alleging Ineffective Translators in Afghanistan

Mission Essential Personnel, a government contractor providing language translators in Afghanistan, has recently lost a motion to dismiss a False Claims Act case filed by whistleblower Paul Funk. Funk, a former manager in 2007 and 2008, alleges that MEP committed fraud on the government by providing substandard translators overseas. MEP…

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Defense Subcontractor Paid for Exposing Arms Secrets by Manufacturing Overseas

Rocky Mountain Instrument Company (RMI) recently entered into a settlement agreement with the DOJ to resolve False Claims Act allegations. RMI, a manufacturer of optical components used in laser and imaging applications, allegedly violated both the Arms Export Control Act and International Traffic in Arms Regulations by manufacturing some components…

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Defense Contractor Billed Government for Prostitutes, Strippers, Complaint Alleges

The private security firm Blackwater is the subject of a False Claims Act (FCA) lawsuit in the United States and the company’s founder was answering questions in Abu Dhabi on August 23rd.  Erik Prince, the company’s founder, moved to the United Arab Emirates this past month, and the plaintiff’s attorney…

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Military Contractor Settles Anti-Kickback Case for $375,000

Panalpina Inc., a Swiss-based contracting company, has agreed to settle a False Claims Act and Anti-Kickback case with the government which alleged that the company illegally paid kickbacks to another military contractor to secure subcontracting work.  Panalpina allegedly paid kickbacks to Kellogg Brown and Root, Inc., a logistics firm under…

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