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Colorado Security Contractor Settles False Claims Allegations

September 30, 2013 — Government contractors who submit false claims to the government are in essence robbing the American taxpayers. The federal False Claims Act allows tipsters to work with the government to stop defense contractor fraud. Under the qui tam provisions of the Act, conscientious informants may bring a lawsuit on behalf of the government against unethical fraudsters and share in the government’s recovery.

NEK Resolves False Claims Allegations Concerning Services in Afghanistan and Iraq

NEK Advanced Securities Inc. (NEK), now known as The Macalan Group Inc., has settled allegations that it made false claims to the government related to a defense contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO). The Colorado security contractor had entered into a contract with JIEDDO for the deployment of highly trained personnel to Afghanistan and Iraq to combat explosive devices.

According to the U.S. Department of Justice, NEK submitted false invoices seeking reimbursement for excessive or unallowable costs. Of particular note were costs associated with lease fees for equipment used by the contractor. Under the terms of its contract, the government alleged, NEK was not permitted to charge the government with lease fees greater than the price paid by NEK to purchase the equipment.

As part of the settlement, NEK has agreed to pay the government $2.08 million, to forego collection of an outstanding $744,969 invoice and to relinquish to the government a number of weapons and accessories acquired under the contract.

Whistleblowers Fight Fraud With False Claims Act Lawsuits

Tipsters with valuable information should take care to understand their rights under the False Claims Act before they notify the government. With a national qui tam practice, Waters & Kraus provides skilled representation for conscientious insiders in government contractor fraud cases. Contact us by email or call our whistleblower lawyers at 855.784.0268 to learn more about how we can assist you.

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