DOJ Media Release: False Claims Act Cases in FY14

The Continuing Trend of Relatively Few Involving Defense Contractors

The False Claims Act (FCA) and the alleged misdeeds of companies doing business with the government made it possible for the U.S. Department of Justice to recover a record amount of $5.69 billion in civil settlements and judgments for the government for this past fiscal year.  Notably a trend continues where relatively few actions involve defense contractors, albeit this group continues to be miscast as the bad players in government contracting.  In FY2014, the true bad players continued to be those involved with federal health care programs ($2.3 billion) and the new kid on the block, bank and other financial institutions fraud ($3.1 billion).

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Topics: Compliant Accounting Infrastructure, Litigation Consulting Support, DFARS Business Systems

Contractor Dilemma: Are Back Pay Amounts Allowable?

Contractor Agrees to Reimburse Employees for Back Wages after Cited SCA Violation

An investigation conducted by the U.S. Department of Labor’s (DOL) Wage and Hour Division for compliance with the McNamara-O’Hara Service Contract Act (SCA) and the Contract Work Hours and Safety Standards Act (CWHSSA) revealed that CH, Inc. violated the provisions of these two statutes by underpaying 35 employees $268,899 in fringe benefits and overtime which, under the statutes, those employees were entitled to receive.

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Topics: Compliant Accounting Infrastructure, Litigation Consulting Support, Small Business Compliance, Contracts & Subcontracts Administration