Whistleblower in @StateDept “CIVPOL” Contract Gets $875K in False Claims Act Settlement

Posted: 12:30 am ET
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On September 13, USDOJ announced that Pacific Architects and Engineers, LLC has agreed to pay $5 million in False Claims Act allegations related to “PAE’s Civilian Police “CIVPOL” contract in support of State Department missions in Afghanistan, Haiti, Lebanon, Liberia, South Sudan, and elsewhere. The announcement includes a note that “The claims settled by this agreement are allegations only, and there has been no determination of liability.” It also adds that the $5 million settlement also resolves a lawsuit filed in the U.S. District Court for the District of Columbia by former PAE manager Robert J. Palombo under the qui tam, or whistleblower provisions, of the False Claims Act and that Mr. Palombo will receive $875,000 as his share of the government’s recovery.

Below is an excerpt from the announcement:

WASHINGTON – Pacific Architects and Engineers, LLC (“PAE”) has agreed to pay the United States $5 million to resolve allegations that it knowingly failed to follow vetting requirements for personnel working in Afghanistan under a State Department contract for labor services. PAE is a Virginia-based contractor that provides personnel and other support to various federal government agencies.

The settlement was announced today by U.S. Attorney Channing D. Phillips and Steve A. Linick, Inspector General for the U.S. Department of State.

The agreement resolves claims relating to PAE’s Civilian Police “CIVPOL” contract in support of State Department missions in Afghanistan, Haiti, Lebanon, Liberia, South Sudan, and elsewhere.  In 2007, the State Department awarded PAE a task order under the CIVPOL contract to provide training and mentoring personnel to counter-narcotics and drug interdiction police and investigators in Afghanistan. The task order required PAE to conduct extensive background checks on U.S. personnel that were in high risk or armed positions, including independently developed reference checks. For local, national, and third party national employees working on the task order, PAE was obligated to submit their names to the State Department’s Regional Security Office in Afghanistan for additional security clearance. According to the government’s evidence, PAE was aware of these contractual requirements but did not comply with them for extended periods. The United States asserts that invoices PAE submitted to the State Department for the labor services of improperly vetted personnel were false.

“This settlement affirms our commitment to hold government contractors accountable for properly screening employees, particularly those who work alongside our government’s personnel in fragile areas of the world,” said U.S. Attorney Phillips. “In this particular matter, it is alleged that PAE failed to conduct the appropriate vetting for personnel working in Afghanistan under a State Department contract for labor services for which invoices were later submitted. Our Office will continue to investigate and seek appropriate recoveries from contractors who do not meet their obligations.”

“The OIG special agents and staff assigned to this case should be commended for their excellent investigative work,” said Inspector General Linick. “Rooting out waste, fraud, and abuse is at the heart of any OIG mission, as is ensuring that contractors are accountable for every taxpayer dollar they receive.”

The settlement also resolves a lawsuit filed in the U.S. District Court for the District of Columbia by former PAE manager Robert J. Palombo under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens may bring suit on behalf of the United States and share in any recovery obtained by the government. Mr. Palombo will receive $875,000 as his share of the government’s recovery. The case is captioned United States ex rel. Robert J. Palombo v. PAE, Inc., et al. 

The claims settled by this agreement are allegations only, and there has been no determination of liability.

This settlement was the result of an investigation into Mr. Palombo’s allegations by the United States Attorney’s Office for the District of Columbia and the Department of State, Office of Inspector General.

The full statement is available here.

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United States v. DynCorp: Suit Alleges Submission of False Claims in Iraqi Police Force Contract

Posted: 2:42 am ET
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Via USDOJ:

United States Files Suit against DynCorp International Alleging Submission of False Claims under State Department Contract

The United States filed a False Claims Act complaint against DynCorp International Inc. (DynCorp) alleging that it knowingly submitted inflated claims in connection with a State Department contract to train Iraqi police forces (CIVPOL contract), the Department of Justice announced today.  The United States filed the complaint in the U.S. District Court for the District of Columbia.  DynCorp, which is headquartered in McLean, Virginia, is a wholly-owned subsidiary of Delta Tucker Holdings Inc.

In April 2004, the State Department’s Bureau for International Narcotics and Law Enforcement Affairs awarded the CIVPOL contract to DynCorp to provide training for civilian police forces in Iraq and other services needed to support that effort, such as trainers, guards, translators, vehicles and living quarters for contractor personnel.  In its complaint, the United States alleges that DynCorp knowingly allowed one of its main CIVPOL subcontractors to charge excessive and unsubstantiated rates for hotel lodging, translator, security guard and driving services and overhead expenses, and included these charges in the claims it submitted under the CIVPOL contract to the State Department.  The complaint also alleges that DynCorp added its own markup to its subcontractor’s excessive charges, thereby further inflating the claims it submitted to the government.

“Companies that contract with the United States have an obligation to deal fairly and openly with the government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Attempting to take advantage of the American taxpayers in times of war is a shameful abuse of this responsibility.”

“The United States relies on its contractors to be forthcoming with accurate information and to act responsibly in return for receiving the taxpayers’ money,” said U.S. Attorney Channing D. Phillips of the District of Columbia.  “Our office is committed to recovering funds from those who fail to adhere to those responsibilities and obligations.”

The civil complaint in this action is the result of an investigation by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and the State Department’s Office of Inspector General.

The case is captioned United States v. DynCorp International, Inc., No. 1:16-cv-01473 (D.D.C.).  The claims asserted in the complaint are allegations only, and there has been no determination of liability.

 

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