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March 21, 2018 By cs

Ineligible SBIR contractor pays $12 million to settle False Claim Act allegations

TrellisWare Technologies, Inc. has agreed to pay $12,177,631.90 to settle civil False Claims Act allegations that it was ineligible for multiple Small Business Innovation and Research (SBIR) contracts it entered into with the Defense Department.

TrellisWare is a majority-owned subsidiary of ViaSat, Inc., a global broadband services and technology company headquartered in San Diego.

The SBIR program is designed to stimulate technological innovation by funding small businesses to engage in federal research and development efforts.  To be considered a small business for purposes of SBIR awards, a contractor must not be majority owned by another company.

Between 2008 and 2015, TrellisWare was awarded multiple SBIR contracts to provide the Navy, Army and Air Force with a variety of technology services and products involving communications and signal processing systems, including wireless networks used in military tactical environments. TrellisWare self-certified that it met the small business size requirements for eligibility to receive SBIR funding.  But based on certain disclosures that TrellisWare later made about its ownership relationship with ViaSat, the government conducted an investigation into TrellisWare’s eligibility for SBIR awards.  The government contends that TrellisWare was not eligible for SBIR awards because it was actually a majority-owned subsidiary of ViaSat at the time it was awarded and performed on SBIR contracts.

This matter was investigated by auditing personnel of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office, in coordination with Special Agents of the Defense Criminal Investigative Service; Naval Criminal Investigative Service; Army Criminal Investigation Command; Air Force Office of Special Investigations; and Small Business Administration, Office of the Inspector General.

Source: https://www.justice.gov/usao-sdca/pr/san-diego-communications-company-pays-more-12-million-settle-false-claim-act

Filed Under: Government Contracting News Tagged With: abuse, Air Force, certification, DoD, DOJ, false claims, False Claims Act, fraud, Navy, SBA, SBIR, SBIR/STTR, self-certification

June 6, 2017 By cs

Following federal employee’s felony plea, contractor settles false claim and kickback claims for $2.5 million

A Texas-based company — along with the company’s former president — have agreed to pay the federal government $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts with the Bureau of Prisons (BOP).

The settlement between the parties occurred following a felony guilty plea by a former BOP employee.

The contractor, Integrated Medical Solutions Inc. (IMS) and company president Jerry Heftler resolve Justice Department (DOJ) allegations that IMS engaged Cary Hudson — then a BOP business administrator — to serve as a paid consultant to assist IMS in obtaining contracts to act as a third-party administrator for developing managed healthcare networks that provide medical care to federal inmates.

DOJ alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process.  After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.

In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a government employee to report any potential conflicts of interests.

The case against IMS was settled by DOJ on June 5, 2017.  This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the Department of Justice Office of the Inspector General.    Except to the extent of the admissions in Hudson’s guilty plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.

Source: https://www.justice.gov/opa/pr/north-texas-contractor-and-executive-agree-pay-united-states-2475-million-resolve-false-1

Filed Under: Government Contracting News Tagged With: abuse. felony, BOP, DOJ, false claims, fraud, Justice Dept., kickback

March 23, 2017 By cs

Inside CA Technologies’ $45 million false claims settlement

A long-lasting legal dispute between IT contractor CA Technologies and the federal government reached a conclusion last week, as the Justice Department announced the company agreed to pay $45 million to settle allegations that it overcharged and provided false pricing information to the government.

The backstory of this conflict signifies a more aggressive stance taken by the government in dealing with contractors that mislead the government or bilk taxpayers. Public statements by both DOJ and the General Services Administration’s inspector general further suggest they are more willing than ever to prosecute contractors that play ball unfairly—even if it takes years to do so, as it did with CA.

DOJ contends New York-based CA submitted false pricing data in 2007 and again in 2009 regarding products it sold through the GSA’s Schedule 70, a multiple-awards schedule and large acquisition vehicle federal agencies use to purchase various IT products and services.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2017/03/inside-ca-technologies-45-million-false-claims-settlement/136231

See earlier article on this subject at: http://contractingacademy.gatech.edu/2017/03/13/it-firm-agrees-to-pay-45-million-to-settle-alleged-false-claims-on-gsa-contract/

Filed Under: Government Contracting News Tagged With: DOJ, false claims, False Claims Act, FSS, GSA, GSA Schedule, GWAC, IG, MAS, OIG, pricing, qui tam, Schedule 70, Schedules, whistleblower, Whistleblower Protection Act

March 20, 2017 By cs

Florida company and its principals pay $320,000 to resolve false claims allegations

A Florida-based company known as People, Technology and Processes, LLC (PTP), along with its principals Victor Buonamia and Nicole Buonamia, have paid the government $320,000 to resolve allegations that they submitted improper invoices for work allegedly performed for the United States in support of the U.S. Army in Afghanistan.

PTP is an information technology and professional services company.  Victor Buonamia is the President and CEO of PTP, and Nicole Buonamia is the CFO. During 2011 and 2012, PTP was a subcontractor to the prime contractor on a government contract awarded by the United States Army Communications-Electronics Command through the Strategic Sources Services (S3) Program.

As a subcontractor, PTP submitted invoices for its services to the prime contractor, who then paid those invoices and, in turn, billed those costs to the United States, which paid them. PTP and its principals were aware that PTP was a subcontractor on a government contract and that PTP’s bills would ultimately be presented to and paid by the U.S. government.

Between November 2011 and June 2012, PTP submitted invoices that were signed by Victor Buonamia and/or Nicole Buonamia for work allegedly done by PTP employees in Afghanistan under the S3 Contract; however, some of that work was not actually performed.  Specifically, during that period, PTP submitted invoices for one employee while he was in another country on R&R for a month, billed for another employee for several weeks after PTP terminated him and flew him back to U.S., and billed one or more weeks for two other employees before they actually started working for PTP.  In all, PTP improperly billed $127,990.90 for work never performed by those employees.

This settlement resolves allegations in a lawsuit filed by relator Aidan Tamer Toprakci in February 2013.  That suit was filed under the whistleblower provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and to share in any recovery.  Toprakci was employed by PTP in 2012 and disclosed certain of the conduct internally to PTP. The relator has received $64,000.00 from the proceeds of the settlement.

This case was investigated by the Tampa Resident Agency of the Defense Criminal Investigative Service, the U.S. Army Criminal Investigation Commands Major Procurement Fraud Unit, and the Special Inspector General for Afghanistan Reconstruction.  The lawsuit was filed in the Middle District of Florida, and is captioned United States ex rel. Toprakci v. People Technology and Processes, LLC, Victor Buonamia, and Nicole Buonamia, Case No. 8:13-cv-432-T-33-MAP (M.D. Fla.).

The claims resolved by the settlement are allegations only; there has been no determination of liability.

Source: https://www.justice.gov/usao-mdfl/pr/people-technology-and-processes-llc-and-its-principals-pay-320000-resolve-false-claims

Filed Under: Government Contracting News Tagged With: Army, DoD, false claims, False Claims Act, fraud, qui tam, whistleblower, Whistleblower Protection Act

March 13, 2017 By cs

IT firm agrees to pay $45 million to settle alleged false claims on GSA contract

CA, Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract.  

CA is an information technology management software and services company headquartered in New York, New York.  The settlement resolves allegations related to a GSA contract awarded to CA for software licenses and maintenance services.

  • Under Multiple Award Schedule (MAS) contracts like this one, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies.
  • At the time of CA’s contract, contractors were required to fully and accurately disclose to GSA how they conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government agencies using the GSA contract to purchase CA products and services.
  • The contract also contained a price reduction clause that set forth when the contractor had to reduce the prices it charged to the government if its prices to commercial customers improved.

The settlement between CA and the federal government resolves allegations that CA did not fully and accurately disclose its discounting practices to GSA contracting officers.  Specifically, the agreement resolves claims that CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009. Additionally, the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.

The allegations against CA were first made in a whistleblower lawsuit filed under the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD.  Under the False Claims Act, private individuals can sue on behalf of the government and share in any recovery.  The False Claims Act also allows the government to intervene and take over the action, as it did, in part, in this case.  Shemesh’s share of the settlement is $10.195 million.

This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the GSA Office of Inspector General.

The Department of Justice (DOJ)  announced this settlement on Friday (Mar. 10, 2017).  The lawsuit is captioned United States ex rel. Shemesh v. CA, Inc., No. 09-1600 (D.D.C.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.

Source: https://www.justice.gov/opa/pr/ca-inc-pay-45-million-alleged-false-claims-government-wide-information-technology-contract

Filed Under: Government Contracting News Tagged With: DOJ, false claims, False Claims Act, FSS, GSA, GSA Schedule, GWAC, MAS, qui tam, Schedule 70, Schedules, whistleblower, Whistleblower Protection Act

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