Tuesday, October 13, 2015

Whistleblower (and her attorney, of course) Have a $3.6 Million Payday

The Justice Department announced late last week that it had reached a settlement with a company and its former president in a case where the company misrepresented itself as a woman-owned small business. By misrepresenting its status, the company was awarded millions of dollars in subcontracts that were set aside for women-owned small businesses.

The former President went to great lengths to support its status as a woman-owned small business, even fooling DCMA's (Defense Contract Management Agency) Comprehensive Subcontracting Plan Group whose mission was to ensure that defense contractors and subcontractors meet all of the requirement for hiring small businesses, including WSOBs (Women-owned small businesses).

The fraud may never have come to light were it not for a former employee who blew the whistle on the scheme by filing a Qui Tam (or whistleblower) suit. The Government intervened in 2012 and settlement was just announced last week. The former company president agreed to a settlement of $20 million. For her part in the case, the whistleblower will receive $3.6 million - not a bad payday.

Through her attorney, the whistleblower said she was "pleased with the outcome." No doubt that is an understatement.

You can read more details of the Government's case by clicking here.

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