NCS Pearson Inc Will Pay $5.6 Million for Overcharging Transportation Security Administration
November 22, 2008 by casey
On November 19, the US Department of Justice reported that NCS Pearson Inc. has agreed to pay $5.6 million to resolve allegations that it violated the False Claims Act. It was alleged that NCS Pearson had overcharged the Transportation Security Administration (TSA) by billing incorrect rates for subcontractor labor. The TSA, which as created by the Aviation and Transportation Security Act, contracted with NCS Pearson for help recruiting and selecting federal screeners for airport security to hire and train.
“Today’s settlement again demonstrates the Department’s commitment to protecting taxpayer funds from misuse by those doing business with the federal government,” said Gregory G. Katsas, Assistant Attorney General for the Department’s Civil Division.
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Military Contract Giant Investigated for Sale of Fragile Flares; Could Pay Hundreds of Millions
November 19, 2008 by casey
The New York Times reported on the investigation of the aerospace and military contract giant ATK Thiokol for violation the False Claims Act. Whistleblower Kendall Dye, a former ATK engineer, discovered that the company was cheating taxpayers by selling fragile flares to the United States Army and Air Force and so endangering the soldiers who used them.
Through the False Claims Act, the government is entitled to recover three times its damages. Should the government win this case, Mr. Dye’s lawyers estimate that the total recovery could reach hundreds of millions of dollars for the purchases of tens of thousands of the flares. Of this settlement, the whistle-blower is able to receive up to 30 percent of the total amount recovered.
Mr. Dye discovered that the flares, which were required to withstand a fall of at least 10 feet, could actually explode after a fall of only 11 inches. After notifying ATK superiors of his discovery, the company failed to correct the problem and continued to sell the flairs. “Ethics and values got thrown out the window when there was a lot of money at stake,” Dye said.
There have been growing concerns about the Department of Defense’s ability to monitor the more than $408 billion it pays for goods and services from companies such as ATK. Last March, the Department’s own inspector general issued a report to Congress that warned of an “increasing gap between resources and oversight, which results in a corresponding increase in risk for fraud, waste and abuse.”
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Schering-Plough Agrees to $31 Million to Settle Medicaid Fraud Charges
November 9, 2008 by casey
The Kansas City Star reported a settlement between Schering-Plough and the state of Missouri on November 9, 2008. The New Jersey-based company was alleged to have inflated prices for the drugs it sold to pharmacies participating in Medicaid, costing Missouri taxpayers millions of dollars. The $31 million settlement marks the largest recovery in Missouri state history resulting from a case against a pharmaceutical company.
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
