Navy Contractor VPSI Settles False Claims Act Lawsuit for $6.5 Million

April 1, 2014 — When Navy contractors file false claims for reimbursement with the government, American taxpayers pick up the tab. Contractors that lack the integrity to deal honestly with our armed forces should be held accountable. Employees working inside the business are usually the first to stumble across unethical scams to bilk the military. The False Claims Act gives these conscientious tipsters the power to file a lawsuit on the government’s behalf. To reward whistleblowers who collaborate to stop corruption, the qui tam language in the Act entitles them to share in any recovery.

Navy Contractor Billed Government Twice for Same Services, Whistleblower Alleged

Vector Planning and Services Inc. (VPSI) will pay $6.5 million to settle a whistleblower lawsuit alleging that the military contractor inflated bills submitted to the government under several contracts with the Navy. VPSI provides consulting, information technology, program management and systems engineering services to the Navy. With headquarters in Virginia, VPSI runs its west coast operations from San Diego.
VPSI is permitted, under its Navy contracts, to charge the military for indirect costs that cannot be allocated to a specific contract. But between 2005 and 2009, VPSI allegedly hiked up its bills for indirect costs by including direct costs that the government had already paid. VPSI allegedly recorded the direct costs in indirect cost accounts that the company improperly allocated across all its Navy contracts and then billed a second time. In addition, VPSI allegedly filed false claims for costs that it had never incurred.
The Navy was originally notified about the false claims through a whistleblower lawsuit filed in California. From the settlement, reports the Justice Department, the whistleblower’s share is $1.28 million.

Collaborating to Battle False Claims Act Violations Against the Armed Forces

The whistleblower lawyers with Waters & Kraus know from experience that many insiders are pressured to keep the lid on billing scams that cheat the American taxpayers. We’ve represented many whistleblowers in circumstances similar to yours. Contact us by email or call our False Claims Act lawyers at 855.784.0268. With offices in California, where VPSI runs its west coast operations, as well as Texas and the Washington D.C. area, we’re ready to protect your rights and interests throughout the qui tam process.

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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 taken more mesothelioma trials to verdict than any other firm. And that’s why we’ve recovered more than $1.3 billion for clients like you. Do you think you have a case? Contact us now to speak with an attorney.

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