Military Fraud Uncovered in FY 2012 Whistleblower Settlements By Tod Aronovitz | 12/06/12 | 0 Comment

Fraud connected to the procurement of military equipment and services accounted for a portion of the false claims for goods and services recovered by the U.S. government in fiscal year 2012, according to a recent government press release.

$73 Million in War-Related False Claims

Military fraud cases related to the wars in Iraq and Afghanistan yielded $73 million in false claims. Two major cases involved military suppliers:

  • ATK Launch Systems Inc. agreed to resolve allegations that it sold dangerous and defective illumination flares used by the Army and the Air Force for nighttime combat and for covert and search and rescue operations.  A $37 million settlement was reached.
  • Maersk Line Limited, a major U.S. shipping company whose vessels and containers are frequent sites in Miami ports and waters, paid the U.S. $31.9 million to resolve allegations that the company knowingly overcharged the Department of Defense to transport cargo to U.S. troops in Afghanistan and Iraq.

$200 Million in Software Sales

In the largest False Claims Act settlement ever obtained under a General Services Administration (“GSA”) contract, the Department of Justice $200 million from software manufacturer Oracle Corp. and Oracle USA.

GSA negotiates contracts with private sector companies for the purchase of commonly used commercial goods and services by agencies throughout the government.  As part of their contract to gain access to the vast federal marketplace, these companies agree to disclose the discounts given to their commercial customers and to pass along those discounts to the government.

The $200 million settlement with Oracle resolved allegations that the company overcharged the government by failing to disclose substantially lower prices offered to its commercial customers.

About The False Claims Act

The False Claims Act is the government’s primary civil remedy to redress false claims for federal money or property, such as Medicare benefits, federal subsidies and loans and payments under contracts for goods and services, including military contracts.

Amendments to the False Claims Act passed in 1986 increased incentives for whistleblowers to file lawsuits on behalf of the government, leading to more investigations and greater recoveries.

Most false claims actions are filed under the act’s whistleblower, or qui tam, provisions, which allow private citizens to file suits alleging false claims on behalf of the government.

If the United States prevails in the action, the whistleblower, known as a relator, receives between 10 to 30 percent of the recovery.

The U.S. Justice Department saw a record 647 qui tam suits filed last fiscal year and recovered a record $3.3 billion in suits filed by whistleblowers during the same period.

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The Miami whistleblower law firm of ARONOVITZ LAW routinely works with Miami whistleblowers to document Medicare fraud and other forms of fraud against the government. Click on the link to read more about our Miami Whistleblower / Qui Tam law firm services.

Contact Miami whistleblower attorney Tod Aronovitz for a confidential discussion of your potential Miami Medicare fraud case.