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8Jul/100

A Whistleblower SNAFU gets Worse

Bradley Manning, the U.S. soldier stationed in Iraq who leaked video of a deadly helicopter attack that killed several people, including a Reuters reporter and a cameraman, has been charged with downloading more than 150,00 highly classified diplomatic cables. In a series of chats with a former outlaw hacker, R. Adrian Lamo, Manning claimed that the number of documents he leaked was even higher--260,000.

Manning leaked his information to the WikiLeaks site, and the video from the helicopter incident in particular set off a storm of controversy. In terms of the hundreds of thousands of diplomatic cables that Manning claimed to have leaked, only one appeared on WikiLeaks--a cable which summarized the U.S. Embassy's discussions with Iceland regarding the strange nation's debt problems (one cause of which apparently was Icelanders' superiority complex, which convinced many life-long fisherman that they were professional investors).

The big question now is whether Manning did a public service by leaking these documents and videos or just got carried away in his quest for attention. Manning had drifted from job to job, and at one point found himself homeless. In introducing himself to Lamo, Manning wrote that he was facing discharge for an ''adjustment disorder." Manning also assaulted a fellow soldier, and wrote that he had been ignored by his fellow soldiers to the point that he felt like all had left were his laptop, some books, and ''a hell of a story.''

Manning's leaked video has been compared to The Pentagon Papers, which detailed the U.S. government's activities in Vietnam and revealed that four presidential administrations had misled the public regarding their intentions in the area. The Pentagon Papers were leaked to The New York Times by Daniel Ellsberg in 1971.

Bradley Manning is a different breed of whistleblower from those typically involved in exposing fraud against the government, and his case will continue to generate controversy. On the one hand, he exploited his access to sensitive information, violated the trust the military put in him, and potentially put U.S. soldiers and diplomatic relations at risk. On the other hand, he exposed the ugly side of war, one from which most Americans are shielded.

This article is brought to you by the QTT, the epicenter for whistleblowers and people interested in the False Claims Act, Qui Tam Provisions, and Medicare and Medicaid fraud. To discuss a potential case, please call Eric Young at 1 (800) 590-4116.

Tagged as: government, military, whistleblower No Comments

8Jun/100

Stapler Fraud = Stealth Fighter Jet Fraud

Sure, office supplies aren't nearly as sexy or controversial as Lockheed Martin's F-22 Raptor Stealth fighter. Who hasn't dreamed of being in the cockpit of a F-22 when our boss is trying to take away our stapler? Unfortunately office supply companies are not immune to the temptations of defrauding the government. The Florida Attorney General recently announced that Office Depot has entered into a $4.5 million agreement to settle allegations that the office supply behemoth overcharged Florida governmental agencies and consumers in violation of the Florida Deceptive and Unfair Practices Act. The settlement will be paid in the form of refunds to both the State of Florida as well as customers.

According to the Florida AG's office, here is the activity in which Office Depot engaged, prompting the investigation:

Bait and switch overcharging of state and local agencies by setting low fixed price for core items and then publishing catalog and website information that leads purchasing agents from low cost items to much higher priced alternative items.

Just as we rely on our defense contractors to provide the F-22s our tax dollars pay for, so de we rely on office supply companies to provide the staplers we contract for at the agreed price. It takes the efforts of both law enforcement as well as citizens to hold fraudsters accountable. For example, a former Lockheed employee filed a lawsuit against his former employer alleging that it knowingly used defective materials in constructing the F-22's skin.

The point of all this is that fraud can occur whether you're talking the mundane (staplers) or the extraordinary (radar-evading jets). Fraud is fraud!

Tagged as: False Claims Act, FCA, fraud, government, military, qui tam, whistleblower No Comments

2Jun/100

Military Contractor Fraud Triumvirate

Three prime examples of military contractor fraud deserve attention today. Two put service members at serious risk of bodily harm or death, and all of them bilked tax payers.

In the first case, a subcontractor of Sikorsky agreed to pay $1.2 million to settle a FCA claim. Ceradyne, Inc., of Costa Mesa, CA, allegedly failed to ballistically test armor plating it installed near the pilot and copilot in Black Hawk helicopters. The Black Hawk is used by the Army, Navy, Air Force, and Marines. Ceradyne allegedly failed to conduct the tests between 1992 and 2006, so there is potentially a whole generation of Black Hawks out there that is not providing adequate protection for its crew members.

The second case also involves helicopters. This time, Bell Helicopter Textron realized that it (oops) overcharged the government for helicopters and services. Bell already paid more than $12.8 million in 2006 to settle its billing mistakes. Now, Bell must pay an additional $3.7 million to settle any claims the U.S. may have against the subsidiary Bell Helicopter Textron Canada Limited as a result of intra-company charges that led to more overbilling. This case comes under the umbrella of the National Procurement Fraud initiative, which is designed to identify this type of fraud early on. Unfortunately, military contractors are good at staying one step ahead of the government.

In the third leg of the military contractor fraud triumvirate is a case involving M24o and M249 machine guns. A former employee of defense contractor Northside Machine Company accused his employer of ordering him to approve gun parts that didn't meet quality standards for troops and then (surprise!) firing him for blowing the whistle. Northside provides trigger assemblies and other parts for M240s and M249s, which are widely used by the military. A federally funded research group found that 30% of troops surveyed reported that the M249 had simply stopped firing during combat, which is probably not the best thing when some insurgent is trying to take you out!

UPDATE: Maybe this should actually be called a quadumvirate! The Army has announced that it is recalling 44,000 advanced combat helmets manufactured by Hebron, OH-based ArmorSource LLC. Apparently the helmets (already issued to soldiers worldwide) do not meet military specs. So now, it looks like tax dollars are being spent to send soldiers out in helicopters with inadequate armor to fight with guns that don't shoot while wearing helmets that may not offer enough protection!

This article is brought to you by The Qui Tam Team, the epicenter for whistleblowers and people interested in the False Claims Act, Qui Tam Provisions, and Medicare and Medicaid fraud. To discuss a potential case, please call Eric Young at 1 (800) 590-4116.

Tagged as: corporate fraud, False Claims Act, FCA, fraud, government, military, qui tam, whistleblower No Comments

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