Feral Jundi

Thursday, July 7, 2011

Legal News: AGNA And It’s Affiliates Pay $7.5 Million To Resolve False Claims Act Allegations

Filed under: Afghanistan,Industry Talk,Legal News — Tags: , , , , , , — Matt @ 1:00 PM

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.

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Saturday, August 28, 2010

Legal News: Judge Denies Defendants AGNA/Wackenhut’s Motions To Dismiss False Claims Act Whistleblower Lawsuit For Kabul Fiasco

Filed under: Afghanistan,Jundism,Legal News — Tags: , , , , , , , , — Matt @ 10:29 PM

According to Debra S. Katz, counsel for Mr. Gordon, “this is an important victory for conscientious employees, like Mr. Gordon, who blow the whistle on fraudulent practices by defense contractors and wind up then paying the ultimate price.  The court’s decision today makes clear that such employees can bring federal claims under the False Claims Act to obtain redress.”

*****

     Excellent news for Mr. Gordon and for his attorney Debra Katz. This legal battle has been raging for awhile, and I wanted to make sure this got attention again. The Kabul Fiasco definitely needed to be addressed and dealt with from a legal standpoint.  It is a message to other companies that doing things right is the only way, or you will pay a price.

     It is also a message to those contractors out there that are put in the unfortunate position that Mr. Gordon was in. That there is hope, and your efforts will pay off. –Matt

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Federal Judge Denies Defendants ArmorGroup’s and Wackenhut’s Motions to Dismiss False Claims Act Whistleblower Lawsuit Involving Fraudulent Practices at the U.S. Embassy in Kabul

August 27, 2010

Judge James Cacheris of the United States District Court for the Eastern District of Virginia has denied Defendants ArmorGroup North America (“AGNA”), ArmorGroup International, Wackenhut Services, Inc., and Cornelius Medley’s motions to dismiss whistleblower James Gordon’s lawsuit brought under the False Claims Act.

On September 9, 2009, Mr. Gordon, former Director of Operations of AGNA, filed a whistleblower retaliation lawsuit under the False Claims Act in United States District Court for the District of Columbia, charging that ArmorGroup management retaliated against him for whistleblowing, internally and to the United States Department of State (“DoS”), about illegalities committed by ArmorGroup in the performance of AGNA’s contracts with the United States to provide security services at the U.S. Embassy in Kabul, Afghanistan and at the U.S. Naval base in Bahrain.

The Complaint charges that during Mr. Gordon’s seven-month tenure as Director of Operations, he investigated, attempted to stop, and reported to DoS a myriad of serious violations committed by ArmorGroup, including:

• Severely understaffing the guard force necessary to protect the U.S. Embassy;

• Allowing AGNA managers and employees to frequent brothels notorious for housing trafficked women in violation of the Trafficking Victims Protection Act;

• Endangering the safety of the guard force during transport to and from the Embassy by attempting to substitute company-owned subpar, refurbished vehicles from Iraq rather than purchasing armored escort vehicles as promised to DoS;

• Knowingly using funds to procure cheap counterfeit goods from a company in Lebanon owned by the wife of AGNA’s Logistics Manager; and

• Engaging in practices to maximize profit from the contract with reckless disregard for the safety and security of the guard force, the U.S. Embassy, and its personnel.

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