September 30, 2013
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 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.
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.
Our Results
Historic settlement for over 1,300 survivors of clergy and adult abuse within the Roman Catholic Archdiocese of Los Angeles, marking a pivotal moment for justice.
A Philadelphia jury awarded a record verdict against ExxonMobil for failing to warn about cancer risks due to benzene in its petroleum products.
Confidential settlement for the wife of a Rhode Island man who died of mesothelioma cancer after exposure to window glazing compound contaminated with asbestos.
That’s the first question everyone asks. The truth is it’s impossible to know. But we can tell you this. Waters Kraus Paul & Siegel has what it takes to fight against big corporate interests and win. That’s why we’ve recovered more than $1.3 billion for clients like you.
