An investigation by the United States identified concerns with respect to dozens of contracts that Red River had with the government, including instances where Red River contracted to provide a particular good or service, but failed to do so despite being paid.  Red River cooperated in the government’s investigation. 

Read more at http://www.fbi.gov/boston/press-releases/2011/new-hampshire-based-red-river-computer-co.-agrees-to-pay-2.3-million-to-resolve-false-claims-act-allegations

Agility is accused of submitting false invoices to a logistics center, and inflating prices since 2003. Prosecutors claim that Agility received rebates and discounts from vendors that it did not pass on to the government in accordance with their contract. Additionally, prosecutors allege the company asked vendors to manipulate the product packaging so it could bill the government twice as much. Agility says this is a civil contract dispute and not a criminal matter.

 For more information see:  http://www.businessweek.com/ap/financialnews/D9OPG5R80.htm

The government claims that they were billed by KBR for private security. Additionally, the government alleges that KBR violated their contract when they failed to obtain Army authorization for arming subcontractors and when they used security contractors who were not registered with the Iraqi Minister of the Interior. KBR disputes the claims, alleging that the government did not provide protection for its employees and the lawsuit is a means for the government to avoid reimbursing KBR for necessary security. KBR also cites a lack of clarity in their contract and the increasingly challenging security conditions in Iraq.

 For more information see:  http://newsandinsight.thomsonreuters.com/Legal/News/2011/08_
_August/Federal_judge__KBR_Iraq_false_claim_lawsuit_can_proceed/

For more information see:  http://online.wsj.com/article/SB10001424052702303936704576398100826124240.html

The Lees join a group of almost 60 contractors and military officers to face criminal charges related to misconduct in obtaining a variety of government contracts in the early part of the Iraq war.  Their involvement in the Iraqi contracting scandal has been known for some time, as their company, Lee Dynamics International, has been barred from doing business with the federal government since July 2007.

Documents filed in the criminal proceeding against George and Justin Lee allege that the Lees provided $225,000 in bribes to one unnamed Army Major (identified as “Person One”) in exchange for the officer directing over $14 million in contracts to Lee Dynamics.  The description of “Person One” in the indictment closely matches that of Maj. Gloria D. Davis, who shot and killed herself in Baghdad in December 2006 after admitting to investigators that she had taken the $225,000 in bribes from the Lees’ company.

The indictment also ties the Lees to another corrupt Army officer, Maj. John Cockerham, who was recently sentenced to 17 years in prison for taking over $9.6 million in bribes while working at a contracting office in Kuwait.  The government has charged George and Justin Lee with providing at least $1 million to Major Cockerham in exchange for being funneled contracts to provide American troops with bottled water, bunk beds, and mattresses.

For more information see:  http://www.nytimes.com/2011/05/31/world/middleeast/31iraq.html?_r=1

The number one state for healthcare fraud is Florida, where many elders choose to retire.  The state is swarming with criminals looking to take advantage of Medicare fraud since it is so easy to become a provider under the government healthcare programs.  Learning how to electronically submit claims is fairly easy, and the government computers automatically generate payments.  The fraudsters don’t only include healthcare professionals; it includes drug dealers and organized crimes units as well. 

To aid is the prevention of fraud, healthcare applicants are being screened; the “high risk” applicants will be subjected to background checks and fingerprinting.  The computer programs are being revamped with new software programs which make them less vulnerable.  Hoping to deter people from these scams are tougher federal sentencing guidelines for crimes that involve more than $1 million in losses. 

Although there may be a few skeptics, Max Baucus, Senate Finance Committee Chairman, said their efforts are already paying off.  Last year the government recovered about $4 billion in losses. 

For more information see:  http://www.reuters.com/article/2011/04/13/us-usa-healthcare-fraud-idUSTRE73C2HX20110413

For more information see:  http://alturl.com/89ahp

For more information se: http://wireupdate.com/wires/9085/us-reach-695000-settlement-with-furuno-usa-in-dispute-over-navigation-equipment/

The E-Rate program, which Congress created in the Telecommunications Act of 1996, provides funding for needy schools and libraries to connect to and utilize the Internet. Under the program, which is funded by fees collected from telephone users, schools apply for funds to pay for hardware and monthly connectivity service fees. The FCC oversees the E-Rate program.

The United States contended that the Houston Independent School District provided false information to the E-Rate program and otherwise violated the program’s requirements by engaging in non-competitive bidding practices for E-Rate contracts. The United States further alleged that school district officials received gratuities from technology vendors, including trips, meals and loans.

This settlement resolves a very interesting, novel False Claims Act case involving an FCC Program that has not received much attention prior to this lawsuit.  This settlement could cause additional suits to be filed against other school districts, as the public beomes more aware of schemes in impacting this Program.