Articles Posted in Procurement fraud

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iStock-1093288618-300x188Three Adobe employees filed False Claims Act lawsuits exposing the scheme and will share a $555K whistleblower reward.

Adobe Inc. (NASDAQ: ADBE) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by paying illegal kickbacks to software-reseller partners in return for their promotion of the company’s products to government customers.

The U.S. government was fraudulently tricked into purchasing unnecessary software licenses, the U.S. Department of Justice alleged. It was also allegedly deceived into purchasing software bundles containing applications it never requested, and fraudulently billed for software licenses for the personal use of government employees on their home computers.

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iStock-1136317631-1-300x200The hiring of the subcontractors by Vescent Photonics allegedly violated conditions on the use of Small Business Innovation Research (SBIR) grant funding.

Laser manufacturer and military contractor Vescent Photonics Inc. has agreed with the U.S. Department of Justice to pay $400,000 to resolve allegations it violated the False Claims Act by improperly employing foreign subcontractors on research projects funded by U.S. government grants.

SBIR program grants
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iStock-914267502-300x163Contractor previously paid $5.6 million to resolve allegations it improperly sourced tungsten cubes from China instead of the United States for high-explosive tank rounds sold to Israel.

A federal appeals court has affirmed an award of almost $500,000 in attorney’s fees and expenses to co-whistleblowers who filed a qui tam lawsuit under the False Claims Act exposing a defense contractor’s illegal use of Chinese-sourced materials under a US-financed military procurement contract with Israel.

The Ninth Circuit Court of Appeals affirmed a trial court order requiring the contractor, California-based Tungsten Heavy Powder & Parts, to pay the fee and expense award.

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The settlement caps the DOJ’s nearly 20-year pursuit of False Claims Act lawsuits, prompted by a whistleblower complaint, against companies in the body-armor supply chain involving Zylon vests

Honeywell International, Inc. (Nasdaq: HON) has agreed to pay $3.35 million to resolve allegations it violated the False Claims Act by supplying defective ballistic material for bulletproof vests purchased by the U.S. Department of Defense and other federal agencies.  The settlement ends the DOJ’s decades-long pursuit of False Claims Act lawsuits against companies in the body armor supply chain that allegedly continued to manufacture, market, and sell Zylon bulletproof vests even after becoming aware that Zylon rapidly degraded in hot and humid conditions, compromising its ability to stop bullets.

Dangerous degradation