Government Recovered Nearly $6 Billion from False Claims Cases

The Justice Department has announced that the federal government recovered $5.69 billion from False Claims Act cases in fiscal year 2014. According to a DOJ press release, this is the first annual recovery to exceed $5 billion. Although mortgage, housing and health care fraud dominated recoveries, DOJ aggressively pursued fraud in government procurement and other federal programs. Significant recoveries included settlements with Hewlett-Packard Co and The Boeing Co. Hewlett-Packard paid $32.5 million to resolve claims involving a contract for IT products and services with the Postal Service. Boeing paid $23 million to settle alleged false claims for labor on maintenance contracts for the C-17 Globemaster aircraft with the Air Force.

In addition, the government filed suits against a number of government contractors. In a lawsuit against Kellogg, Brown & Root and two foreign subcontractors arising from claims in connection with KBR’s contract with the Army to provide wartime logistical support, the government alleged that KBR employees took kickbacks from two subcontractors in return for favorable treatment in the award and performance of numerous subcontracts for maintenance, transportation and other services in Iraq. Also, the government filed a complaint against global software provider CA Inc. after intervening in a whistleblower suit against the company. The government’s complaint alleged that CA knowingly overcharged the government for software licenses and maintenance in connection with a General Services Administration Multiple Award Schedule contract.

About George Gullo

George Gullo is a Senior Writer/Analyst in the Government Contracts group at Wolters Kluwer Law and Business. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 20 years experience in the legal publishing industry, including over 10 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
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