Feral Jundi

Wednesday, September 7, 2011

Legal News: Corporate Whistle Blower Center Reaches Out To Contractors

I like it. Anything that gets the companies to do the right thing is a good thing. So if the Corporate Whistle Blower Center can help contractors that have identified waste, fraud, and abuse in their companies, then I dig that. Especially if they can help those contractors get the reward that comes with reporting such abuse.

What I believe this organization is referring to when talking about a reward is the provisions within the False Claims Act. I mentioned this law as a primary driver on why AGNA settled in the case with James Gordon. Here is a quick summary of the Lincoln Law.

The False Claims Act (31 U.S.C. §§ 3729–3733, also called the “Lincoln Law”) is an American federal law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs. The law includes a “qui tam” provision that allows people who are not affiliated with the government to file actions on behalf of the government (informally called “whistleblowing”). Persons filing under the Act stand to receive a portion (usually about 15–25 percent) of any recovered damages. Claims under the law have typically involved health care, military, or other government spending programs. The government has recovered nearly $22 billion under the False Claims Act between 1987 (after the significant 1986 amendments) and 2008.

The other reason why there is more interest in these kinds of cases is that companies will be hurt in any bidding process for government contracts, if they are charged with False Claims or in litigation. It is the primary reason why AGNA settled, so that it would not stop them from pursuing contracts. Here is a link to the FAR 52.207-1 that details what I am talking about.  I also put that section up below this article.

Now just for clarification, I am not affiliated with this group, nor can I vouch for their effectiveness. They are just another option for contractors to use, and of course do your own research and put together a good strategy before getting into this stuff. –Matt

 

Corporate Whistle Blower Center Urges U.S. Contractor Employees in Afghanistan and Iraq to Step Forward for Huge Rewards if They Can Prove Massive Fraud
Tuesday, September 6, 2011
The Corporate Whistle Blower Center is urging employees of major U.S. federal contractors, or subcontractors, that have been defrauding the US taxpayer in Afghanistan, or Iraq to step forward, for what could be enormous rewards, provided they can prove it. An independent panel investigating wartime spending estimates that as much as $60 billion has been lost to waste and fraud over the past decade in Iraq and Afghanistan. In its final report to Congress, the Commission on Wartime Contracting said the figure could grow larger as U.S. support for reconstruction projects and programs wanes and Iraq and Afghanistan are unable to sustain the schools, medical clinics, roads and power plants already built with American tax dollars. The Corporate Whistle Blower Center says, “In actuality we are pretty sure in many cases the schools, power plants, or medical clinics were never completed, and in other instances we know federal subcontractors gouged the U.S. government, and the taxpayers on everything from over inflated fuel, or food prices, to pretty much you name it. As long as you can prove it, and the amount exceeds two million dollars, there can be huge rewards for this type of information, as long as its substantial proof, and credible. If you possess this type of information please call us at 866-714-6466, because we would welcome the chance to explain the federal whistleblower reward programs to you.”
September 06, 2011
The Corporate Whistle Blower Center is strongly encouraging employees of federal contractors, or their subcontractors, that were providing any type of service in Afghanistan, or Iraq to step forward, if they possess significant proof of overbilling, or defrauding the U.S. federal government, because the rewards can be enormous. The group says, “If a government type panel says the fraud is sixty billion dollars in Iraq, or Afghanistan, its probably more like a hundred billions dollars plus, and provided you have substantial proof, and the proof is easy to understand, and black, and white, the rewards can be huge.” The Corporate Whistle Blower Center says, “When it comes U.S. contractors, or subcontractors defrauding the U.S. taxpayer we think in some instances it could be in the tens, or hundreds of millions of dollars, and it runs the gamete from construction, or infrastructure projects, that were not properly done, or not done at all, to food, fuel, engineering services, to you name it. And, we are pretty sure there are hundreds, or thousands of individuals, who possess the proof it happened. To us this type of solid proof is like having a winning lotto ticket, and we’d like to explain how the U.S. Federal Whistleblower programs work.” For more information please contact the Corporate Whistle Blower Center anytime at 866-714-6466, or contact the group via its web site at http://CorporateWhistleBlowerCenter.Com
Simple rules for a whistleblower from the Corporate Whistle Blower Center:
•    Do not go to the government first, if you are a major whistleblower. The Corporate Whistle Blower Center says, “Major whistleblowers frequently go to the federal government thinking they will help. Its a huge mistake. Frequently government officials could care less, or they are incompetent.”
•    Do not go to the news media with your whistleblower information. Public revelation of a whistleblower’s information could destroy any prospect for a reward.
•    Do not try to force a government contractor, or corporation to come clean to the government about their wrong doing. The Corporate Whistle Blower Center says, “Fraud is so rampant among federal contractors, that any suggestion of exposure might result in an instant job termination, or harassment of the whistleblower. We say, come to us first, tell us what type of information you have, and if we think its sufficient, we will help find the right law firms, to assist in advancing your information.”
Any type of insider, or employee, who possesses significant proof of their employer, or a government contractor fleecing the federal government is encouraged to contact to Corporate Whistle Blower Center anytime at 866-714-6466, or they can contact the group via their web site here.

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52.209-5  Certification Regarding Responsibility Matters.

As prescribed in 9.104-7(a), insert the following provision:

Certification Regarding Responsibility Matters (Apr 2010)

(a)(1) The Offeror certifies, to the best of its knowledge and belief, that—

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Thursday, July 7, 2011

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

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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