February 9, 2012
Ward Diesel Filter Systems Inc. will pay the federal government $628,000 to settle allegations that the defense contractor knowingly submitted false claims to several federal agencies, according to the Justice Department. Ward Diesel had a contract through the General Services Administration’s (GSA) Multiple Award Schedule program to provide diesel exhaust filtering systems to be used on fire engines belonging to the Department of the Navy, Department of the Army, Department of Interior, the Department of Energy, the Air Force, and the Marine Corps.
Under its contract with the GSA, Ward Diesel was required to provide truthful information on commercial pricing of its diesel exhaust filtering systems. Moreover, Ward Diesel was required to offer GSA prices that were more favorable than those offered to the company’s most-favored customers. If most-favored customers received any additional discounts during the life of its GSA contract, Ward Diesel was required to inform GSA of that as well. Prosecutors allege that Ward Diesel did not provide accurate information as required under the contract, so that the government agencies who received the company’s products were overpaying for them.
Ward Diesel’s fraudulent conduct was uncovered by a whistleblower, who filed a lawsuit under the False Claims Act. The False Claims Act contains qui tam provisions that allow a whistleblower to file a lawsuit on behalf of the government and to receive a portion of any recovery. In this case, the whistleblower will receive over $94,000.
Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.
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