Wow, this is quite the legal news day! James Gordon has been fighting this one for a long time, and it is good to see him become victorious in his case. ($1.35 million for a settlement is not bad) This is also an interesting precedence for False Claims Acts, because now guys can look at this case as an example of how to go about pursuing similar cases. Debra Katz was Gordon’s legal counsel and she would be a good one to put on retainer if you have a False Claims Act that you would like to pursue. –Matt
Edit: 07/11/2011- I have just been contacted by a representative of AGNA in regards to their side of the case. Out of fairness, I think it is important to post their view and you can read their statement in the comments section below.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, July 7, 2011
Armor Group North America and Its Affiliates Pay $7.5 Million to Resolve False Claims Act Allegations
Armor Group North America Inc. (AGNA) and its affiliates have paid the United States $7.5 million to resolve allegations that AGNA submitted false claims for payment on a State Department contract to provide armed guard services at the U.S. Embassy in Kabul, Afghanistan, the Justice Department announced today. The settlement resolves U.S. claims that in 2007 and 2008, AGNA guards violated the Trafficking Victims Protection Act (TVPA) by visiting brothels in Kabul, and that AGNA’s management knew about the guards’ activities. The settlement also resolves allegations that AGNA misrepresented the prior work experience of 38 third country national guards it had hired to guard the Embassy, and that AGNA failed to comply with certain Foreign Ownership, Control and Influence mitigation requirements on the embassy contract, and on a separate contract to provide guard services at a Naval Support Facility in Bahrain.
The settlement resolves a whistleblower suit filed in the U.S. District Court for the District of Columbia. The lawsuit was initially filed under seal by James Gordon against AGNA, ArmorGroup International plc, G4S plc and Wackenhut Services Inc. under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals, called “relators”, to bring lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. Mr. Gordon will receive $1.35 million of the settlement proceeds. During 2007 and early 2008, Mr. Gordon was employed by AGNA, as its director of operations.