Archive for December, 2013

$3.8 Billion Recovered Under False Claims Act In 2013

Monday, December 23rd, 2013

The Department of Justice announced that fiscal year 2013 was a record year for recovery of taxpayer dollars under the False Claims Act (“FCA”) with $3.8 billion obtained in settlements and judgments from FCA defendants.   This recovery, the second largest in history, brings the total amount recovered under the Act since January 2009 to $17 billion.  Healthcare fraud cases accounted for $2.6 billion of the total amount with procurement and defense fraud cases accounting for $890 million.  The vast majority of the $3.8 billion recovered in 2013, $2.9 billion, came through qui tam suits, with whistleblowers receiving $345 million under the Act.   Fiscal year 2013 also had 752 qui tam filings, the largest number of filings in history.

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Northrop Grumman To Pay $11.4 Million To Resolve FCA Allegations

Wednesday, December 18th, 2013

Northrop Grumman, one of the nation’s largest defense contractors, agreed to pay $11.4 million to resolve allegations that it violated the Federal Acquisition Regulations (“FAR”) and the FCA.  According to the allegations, Northrop failed to comply with its 2002 settlement agreement with the Defense Contract Management Agency (“DMCA”) by charging deferred compensation awards to key employees to its federal contracts, in violation of its 2002 settlement agreement.

The case arose when the government contracting officer found that Northrop after learning that it failed to abide by the 2002 agreement by charging the government for the costs of its deferred compensation awards and ordered Northrop to pay a penalty of twice the amount of unallowable costs.  After Northrop challenged the decision, the U.S. counterclaimed for violating the FCA by charging the government the unallowable costs.