Title: Justice Department Recovers over $3 Billion from False Claims Act Cases in Fiscal Year 2019 | OPA | Department of Justice
Headings: Justice News
Justice News
Department of Justice
Justice Department Recovers over $3 Billion from False Claims Act Cases in Fiscal Year 2019
Health Care Fraud
Procurement Fraud
Other Fraud Recoveries
Holding Individuals Accountable
Recoveries in Whistleblower Suits
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Content: Procurement Fraud
In the past year, the department also pursued a variety of fraud matters involving the government’s purchase of goods and services. For example, five South Korea-based companies – SK Energy Co. Ltd., GS Caltex Corporation, Hanjin Transportation Co. Ltd. , Hyundai Oilbank Co. Ltd. and S-Oil Corporation – agreed to resolve allegations that they engaged in anticompetitive conduct targeting contracts to supply fuel to the U.S. military in South Korea and made false statements to the government in connection with their agreement not to compete. The United States Department of Defense paid substantially more for fuel supply services in South Korea than it would have absent collusion on the fuel supply contracts. In total, the five companies paid over $162 million as part of the False Claims Act settlements. The Civil Division entered into a $34.6 million settlement with aluminum extrusion manufacturer Hydro Extrusion Portland Inc ., formerly known as Sapa Profiles Inc. (SPI), to resolve SPI’s civil liability for causing a government contractor to invoice NASA and the Department of Defense’s Missile Defense Agency (MDA) for aluminum extrusions that did not comply with contract specifications. Government contractors purchased aluminum extrusions from SPI for use on rockets for NASA and missiles provided to the MDA. SPI provided those contractors with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extrusions. Several of the rockets used by NASA crashed, resulting in the loss of the NASA payloads that they carried. SPI also resolved related criminal claims arising from the same conduct.