Closely-held companies, particularly government contractors making Arbanes-Oxley Act representations, should establish best practices to ensure compliance, including adopting a code of conduct and ethics; appointing independent directors or managers to the board; establishing internal financial controls; and adopting policies regarding interested transactions and conflicts of interest. Failing to comply with the act opens a company […]
In a recent case, the Seventh Circuit confirmed there is no violation of the False Claims Act where the defendant allegedly violated a self-imposed requirement that was not mandated by its contract with the government, and affirmed the proper test for determining whether a purported whistleblower has undertaken a protected activity for purposes of a […]
In a recent decision, the Seventh Circuit revisited and reaffirmed its rejection of an implied certification claim under the False Claims Act. In United States ex rel. Nelson v. Sanford-Brown, Ltd., the relator alleged Sanford-Brown College, which receives federal funding, maintained recruiting and retention practices that violated Title IV, and thus the FCA. According to […]
Lawsuit Settled for $125 Million Against Contractors for Knowingly Mischarging Costs at Nuclear Waste...
The Justice Department announced that Bechtel National Inc., Bechtel Corp., URS Corp. (predecessor in interest to AECOM Global II LLC) and URS Energy and Construction Inc. (now known as AECOM Energy and Construction Inc.) have agreed to pay $125 million to resolve allegations they charged the Department of Energy for deficient nuclear quality materials, services, and […]
A prospective government contractors has been sentenced to 15 months in prison for offering bribes to a Defense Logistics Agency-Energy procurement official while negotiating aviation fuel contracts worth over $1 billion. According to court documents, Razak A. Dosunmu, owner and operator of United Globe Auto Body LLC, sought contracts with DLA-Energy beginning in 2014. In May 2015, […]
With the increase in federal False Claims Act investigations, contractors should be aware the government prosecutes not only examples of egregious fraud, but cases where contractors or their employees made mistakes or failed to follow government’s fast-changing regulations. To build a culture of compliance, firms should create a code of business ethics and conduct; establish […]
The Department of Justice and Federal Trade Commission have issued joint guidance for human resources professionals on avoiding anti-trust violations. DOJ says it will criminally investigate firms that enter into agreements to fix employee wages or who agree not to hire away each other’s employees. DOJ and FTC also warned that companies might face civil […]
The Office of the Comptroller of the Currency, Federal Reserve System, and Federal Deposit Insurance Corporation have released a joint advance notice of proposed rulemaking regarding enhanced cyber risk management standards for large and interconnected entities under their supervision, and those entities’ service providers. The agencies are considering establishing enhanced standards to increase the operational […]
According to an analysis of government suspension and debarment activity by Crowell & Moring, small businesses account for the vast majority of excluded companies. Where large firms are able to address a suspension or proposed debarment, and proactively address ethics and compliance issues with agency S&D officials, small firms may lack the resources and know-how […]
Fifth Circuit Affirms False Claims Act’s Anti-Retaliation Provision Cannot Be Used Against Individuals Who...
The Fifth Circuit has affirmed the dismissal of a whistleblower’s claim of False Claims Act retaliation against all individual defendants in the case. In Howell v. Town of Ball, the Plaintiff had brought claims under the FCA against the town of Ball, Louisiana, as his employer, and also against several individuals with roles in town […]