2014 False Claims Act Cases

In 2014 the U.S. government recovered $3,056,326,588 from False Claims Act whistleblower cases. 

The cases collected below account for $1,064,010,000 of the overall amount recovered. The whistleblowers involved in these cases were awarded more than $121,980,054.

The cases presented here do not include any of the medical related (pharmaceutical companies, physicians, Medicare, etc..) False Claims Act cases from 2014.

Read the cases below for more information 

Whistleblower Uncovers Fraudulent Giving of Educational Awards to Undeserving Students in Arizona Community Colleges

December 1, 2014:  Maricopa Country Community College District (MCCCD) has agreed to pay $4.08 million to resolve allegations that it submitted false claims to the Corporation for National and Community Service (CNCS) concerning AmeriCorps state and national grants. MCCCD misused these national service funds by inappropriately certifying that students had completed the required number of service hours so they would earn an AmeriCorps education award. They also improperly received grants funds from CNCS to conduct a project, called Project Ayuda. to engage students in national service.

Christine Hunt, an employee of MCCCD, helped uncover this fraudulent behavior and originally filed the case under the qui tam provisions of the False Claims Act. For her help in the case she was awarded $775,82.

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Company Abusing Veteran Benefits Revealed by Whistleblower 

October 29, 2014:  North Florida Shipyards and its president, Matt Self, will pay $1 million to resolve allegations that they violated the False Claims Act by creating a front company, Ind-Mar Services Inc., in order to be awarded Coast Guard contracts that were designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs). To qualify for this award, a company must be operated and managed by service disabled veterans and must perform at least 51 percent of the labor. Ind-Mar was merely a contracting vehicle for North Florida, who performed all the work and received all the benefits.

This fake front was exposed by two whistleblowers, Robert Hallstein and Earle Yerger, who filed a lawsuit against the company under the qui tam provisions of the False Claims Act. These two whistleblower helped expose a company that was taking advantage of veteran benefits and in acknowledgment of this they were awarded $180,000.

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Whistleblowers Uncover Boeing Company Scamming U.S. Air Force

October 10, 2014:  The Boeing Company paid $23 million to settle allegations that the company submitted false claims for labor charged on maintenance contracts with the U.S. Air Force for the C-17 Globemaster aircraft. The aircraft, which is both manufactured and maintained by Boeing, is one of the military's major systems for transporting troops and cargo throughout the world. The Boeing Company knowingly charged the United States Air Force for time its mechanics spent on extended breaks and lunch hours and not on maintenance and repair work properly chargeable to the contracts.

Four Boeing employees, Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza, brought this information to light when they filed a lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act. In acknowledgment of their vital role in holding The Boeing Company accountable for its actions as well as the risks they faced in bringing this information forward, they will collectively be awarded $3,901,000.

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Whistleblower Helps Hold Samsung Accountable for Contract Violations
August 19,2014:  Samsung has agreed to pay $2.3 million to resolve allegations that it caused the submission of false claims for products sold on General Service Administration (GSA) Multiple Award Schedule (MAS) contracts in violation of the Trade Agreements Act of 1979 (TAA). GSA MAS contracts require that the vendor certify that all products it offers for sale comply with the TAA. The TAA generally requires the United States to purchase products made in the United States or another designated country with which the United States has a trade agreement. Samsung represented to the resellers, who in turn represented to federal agencies, that certain products were made in TAA designated countries when they were not.

The lawsuit against Samsung was originally filed by Robert Simmons, a former Samsung employee, under the False Claims Act's whistleblower provisions. In acknowledgment of his important role in the case as well as his potential loss of career and livelihood, Robert Simmons will be awarded a share of the settlement.
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Whistleblower Helps Prosecute Computer Software Company for False Claims Act Violations
July 22, 2014:  The United States has intervened in a lawsuit against Symantec Corporation, which alleges that Symantec submitted False Claims to the United States on a General Services Administration (GSA) software contract. Symantec knowingly provided the United States with inaccurate and incomplete information about the prices it was offering to its commercial customers during the negotiation and performance of the contract.

This case was originally filed by a whistleblower under the qui tam provisions of the False Claims Act. For their instrumental role in the case, the whistleblower will receive a portion of the settlement.

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Whistleblower Reveals Illegal Recruiting by Stevens-Henager College, Inc.

May 8, 2014:  The United States has filed a complaint under the False Claims Act against Stevens-Henager College, Inc., and its owner, for illegally compensating recruiters. The college falsely certified compliance with provisions of federal law that prohibit a university from paying incentive-based compensation to its admission recruiters based on the number of students they recruit.

This illegal activity was discovered by two former Stevens-Henager employees who then filed the case against the college under the qui tam provisions of the False Claims Act. For risking their livelihood and their jobs, the whistleblowers received a portion of the settlement.

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Construction Company Gives False Information to Receive Government Contract
March 21, 2014:  The Oakland Construction Co. Inc. has agreed to pay $928,000 to resolve allegations that it made false statements and submitted false claims under the Small Business Administration's (SBA) Program for Small and Disadvantaged Businesses. Oakland Construction entered into a mentor-protégé agreement with Saiz Construction Co yet did not form a qualifying joint venture with Saiz Construction and therefore was not eligible to jointly bid on or perform the primary functions of contracts with Saiz Construction. Nevertheless, Oakland Construction prepared the bids for the contracts, performed accounting functions, and had its employees serve as project managers. The company then concealed its extensive involvement by misrepresenting to the government that its employees were employees of Saiz Construction.

The lawsuit against Oakland Construction was filed by Saiz Construction and its owner Abel Saiz under the whistleblower provisions of the False Claims Act. The two parties will receive $148,480.

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Whistleblower Reveals Contractor Deceiving U.S. Navy
February 18, 2014:  Vector Planning and Services Inc. (VPSI) has agreed to pay the government $6.5 million to settle False Claims Act allegations that the company inflated claims for payment under several Navy contracts. VPSI has a number of contracts with the Navy, under which the company is allowed to bill the government for its indirect costs. However, VPSI inflated its indirect cost billings to the government by including direct costs, for which it had already been paid, and submitting claims for other costs that were never incurred.
The lawsuit was originally brought forward by a whistleblower that filed the case under the qui tam provisions of the False Claims Act. Due to the risks taken in coming forward with this information, the whistleblower will be awarded $1.28 million. 

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Whistleblower Discovers Map Company's Use of Unapproved Foreign Subcontractors

February 7, 2014:  Sanborn Map Company Inc. has agreed to pay $2.1 million to resolve allegations that it submitted false claims in connection with U.S. Army Corps of Engineers contracts involving both military and civilian projects. Sanborn used unapproved foreign subcontractors on three projects, which violated contractual obligations and caused delays on the projects.

The whistleblower in this case was James Patterson, a former Sanborn employee James Patterson. For risking his livelihood and job, Patterson Patterson will receive a share of the settlement.

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Whistleblower Helps Hold Big Banks Accountable

February 4, 2014:  JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees. JPMC approved thousands of FHA loans and hundreds of VA loans that were not eligible because they did not meet applicable agency underwriting requirements. JPMC further admitted that it failed to inform the FHA and the VA when its own internal reviews discovered more than 500 defective loans that never should have been admitted for insurance.

The complaint against JPMC was filed by a whistleblower under the qui tam provisions of the False Claims Act. For their help in bringing about such a large lawsuit as well as in acknowledgment of the risks they took in doing so, the whistleblower will be awarded a large share of the settlement.

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Whistleblower Brings Attention to Flawed Nuclear Reactor
January 23, 2014:  General Electric Hitachi Nuclear Energy Americas LLC (GE Hitachi) has agreed to pay $2.7 million to resolve allegations that it made false statements and claims concerning an advanced nuclear reactor design. GE Hitachi made such statements about a component known as the steam dryer, concealing known flaws in the device and falsely representing that it had properly analyzed and verified the accuracy of its modeling using reliable data.

LeRay Dandy, a former employee of GE Hitachi, was the whistleblower that originally filed the lawsuit against the company under the qui tam provisions of the False Claims Act. His decision to come forward potentially saved lives and in acknowledgment of his service as well as his potential loss of career and livelihood, he will be awarded a share of the settlement.
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