Find Corporate Waste

Category: Defense and National Security

  • Alabama Defense Contractor Pays $507K to Resolve False Claims Act Cybersecurity Allegations

    Alabama Defense Contractor Pays $507K to Resolve False Claims Act Cybersecurity Allegations

    The Department of Justice announced that LOGZONE Inc. agreed to pay $507,144⁠ to resolve False Claims Act liability related to alleged cybersecurity noncompliance on Department of the Navy contracts.

    LOGZONE, a Huntsville, Alabama defense contractor, provided logistical, inventory, and facilities support services for the Naval Oceanographic Command Property Management Program at Stennis Space Center in Mississippi.

    According to DOJ, the Navy contracts required LOGZONE to comply with cybersecurity obligations under DFARS contract clauses, including requirements tied to NIST SP 800-171⁠, which governs protection of controlled unclassified information in nonfederal systems.

    The government alleged that LOGZONE submitted claims for payment while failing to fully implement required cybersecurity controls.

    The DOJ also alleged that LOGZONE submitted a perfect cybersecurity self-assessment score of 110 in October 2021, but a later government assessment in February 2024 produced a score of -170.

    The settlement agreement states that the covered conduct occurred from May 5, 2021, through March 8, 2025. The $507,144 settlement includes $253,572 in restitution.

    This case reflects DOJ’s continued use of the False Claims Act⁠ to pursue government contractors that allegedly seek federal payment while failing to meet material contract requirements.

  • Former Intelligence Contractor Pleads Guilty in Kickback Scheme

    Former Intelligence Contractor Pleads Guilty in Kickback Scheme

    A former Intelligence Community contractor pleaded guilty to conspiring to commit offenses against the United States after admitting that he solicited and accepted illegal kickbacks tied to government procurement.

    According to the DOJ⁠, David Duggin, 55, of Orrtanna, Pennsylvania, was a former senior systems engineer and on-site contractor at a U.S. government Intelligence Community agency. Prosecutors said Duggin and co-conspirators used his on-site access to sensitive information to help obtain government contracts for millions of dollars of hardware and software purchased by U.S. government customers.  

    The DOJ said Duggin received at least $510,000 in illegal kickbacks in exchange for influencing the procurement process to favor his co-conspirators. The alleged conspiracy began at least as early as June 2018 and continued through at least April 2024.  

    The case is being investigated by the Defense Criminal Investigative Service and the FBI Baltimore Field Office, with prosecutors from the Antitrust Division and the U.S. Attorney’s Office for the District of Maryland. The DOJ also highlighted the Procurement Collusion Strike Force⁠, which targets bid rigging, price fixing, market allocation, and related fraud affecting government spending.

    For Find Corporate Waste⁠, the case is another reminder that taxpayer-funded procurement fraud often depends on insiders, access, and certification-driven trust. 

  • North Carolina Woman Charged in Immigration and VA Disability Fraud Case

    North Carolina Woman Charged in Immigration and VA Disability Fraud Case

    The DOJ announced that Britney Sherene Curry, 26, of Charlotte, North Carolina, was indicted in the Western District of Missouri for conspiracy to commit immigration fraud, false statements under oath on immigration documents, unlawfully procuring citizenship, mail fraud, and wire fraud.

    According to the DOJ, Curry is a Jamaican national who entered the United States on a six-month B-2 visa in 2015 and allegedly never left. Prosecutors claim she paid a third party to arrange a fraudulent marriage with a U.S. citizen to obtain immigration benefits. The DOJ alleges Curry and her husband first met on the day of the marriage and never lived together.

    The alleged scheme later reached federal benefit payments. After becoming a lawful permanent resident, Curry joined the U.S. Army, applied for naturalization, and later received VA disability compensation. Prosecutors allege she claimed her husband as a dependent for VA disability purposes, increasing her monthly benefit, despite allegedly never living with him and not seeing him after she enlisted.

    The case was investigated by DHS-OIG, ICE Enforcement and Removal Operations, USCIS, VA-OIG, and Army CID. The DOJ noted that VA disability payments passed through Treasury Payment Operations in Kansas City, Missouri.

    The indictment is only an accusation, and Curry is presumed innocent unless proven guilty.

    For Find Corporate Waste, the case is another reminder that federal benefit programs depend on truthful eligibility claims. Whether the program is immigration, veterans benefits, PPP, PRF, or federal contracting, the core issue is the same: public money moves when applicants certify facts that agencies rely on. When those facts are allegedly false, taxpayer funds become recoverable exposure.

  • Contractors to Pay $3.6M Over False Veteran-Owned Small Business Certification

    Contractors to Pay $3.6M Over False Veteran-Owned Small Business Certification

    Two government contractors agreed to pay more than $3.6 million to resolve allegations involving False Claims Act and Contract Disputes Act liability tied to federal set-aside contracts, according to the DOJ.

    The settlement involves Officium Global LLC and Loyal Source Government Services LLC. Prosecutors said Officium Global allegedly submitted false or fraudulent claims for payment on seven service-disabled veteran-owned small business set-aside contracts awarded between May 2017 and June 2018.

    According to the settlement agreement, Officium Global was allegedly not entitled to those contracts because its management and daily business operations were not controlled by a service-disabled veteran. The DOJ said the company submitted, or caused to be submitted, false certifications and statements representing that it met all requirements to be a service-disabled veteran-owned small business when it did not.

    Officium Global will pay more than $1.8 million to resolve the False Claims Act allegations. Loyal Source Government Services will separately pay more than $1.8 million to resolve Contract Disputes Act allegations tied to alleged breaches of the same seven contracts.

    The case began as a qui tam lawsuit filed by relator Jeremy Lavin in the Middle District of Florida. Under the False Claims Act, private citizens may sue on behalf of the United States and share in the recovery.

    The DOJ said Lavin will receive more than $680,000 from the settlement proceeds.

    The case is United States ex rel. Lavin v. Loyal Source Government Services, LLC et al., No. 6:19-cv-958, in the U.S. District Court for the Middle District of Florida. 

    Find Corporate Waste tracks False Claims Act recoveries involving government contracting fraud, small-business set-asides, and eligibility certifications. Anyone with inside knowledge of set-aside control failures, pass-through contracting arrangements, or false small-business certifications may have information relevant to public-fraud enforcement.

  • Canadian Steel Companies to Pay $19M Over False Claims Act Trade Fraud Allegations

    Canadian Steel Companies to Pay $19M Over False Claims Act Trade Fraud Allegations

    Two Canada-based steel companies and their owner have agreed to pay $19 million to resolve False Claims Act allegations involving evaded customs duties on imported steel.

    According to the DOJ, Farjess Inc., Royal Canadian Steel Inc., and part-owner and president Feroz Jessani allegedly failed to pay duties owed on flat-rolled steel manufactured in Europe and Asia.

    Federal officials said the companies represented that certain steel originated in Canada or the United States, when they allegedly knew the steel actually came from China, Indonesia, Italy, Turkey, or Vietnam.

    The alleged conduct occurred from May 2019 through January 2025.

    This case matters because trade fraud is not just a customs issue. It is a taxpayer issue, a market fairness issue, and a direct threat to American businesses that follow the rules.

    Importers are required to accurately declare the country of origin, value, duty status, and amount of duties owed when goods enter the United States. When those declarations are false, the government can lose revenue while competitors gain an unfair advantage.

    That is exactly why the False Claims Act remains one of the government’s strongest tools against corporate fraud.

    The statute allows the government to recover funds when false statements or fraudulent conduct cause financial harm to the United States.

    It also allows whistleblowers to bring cases on behalf of the government and share in any recovery.

    The whistleblower in this case was Shamsh Dhala, a broker who worked with Farjess Inc.

    Dhala filed the case under the qui tam provisions of the False Claims Act in the Eastern District of Michigan.

    The case is captioned United States ex rel. Dhala v. Royal Canadian Steel Inc. et al., No. 2:23-cv-12097.

    As part of the settlement, Dhala will receive approximately $3.61 million.

    For Find Corporate Waste, the message is clear: corporate fraud often hides in ordinary paperwork. A customs form, shipment record, invoice, certification, billing file, or loan application can become the starting point for a major federal recovery.

    This settlement also fits into a broader enforcement pattern. The DOJ said the case was coordinated through its Trade Fraud Task Force, a cross-agency effort focused on tariff evasion, customs fraud, prohibited imports, threats to domestic industry, and conduct that weakens national security.

    The same logic applies across the areas covered by Find Corporate Waste: False Claims Act cases, government contracting abuse, pandemic relief fraud, healthcare fraud, customs fraud, and other schemes involving public money.

    When companies cheat the system, the cost does not disappear. It is shifted onto taxpayers, lawful competitors, American workers, and the public.

    If you have information about customs fraud, government contract abuse, healthcare billing fraud, pandemic relief misuse, or other misuse of taxpayer funds, Find Corporate Waste wants to hear from you.

    The strongest cases often begin with a person willing to connect the dots.

  • Illumina’s $9.8M Cybersecurity Settlement Explained

    Illumina’s $9.8M Cybersecurity Settlement Explained

    Cybersecurity protection is a vital area where the federal government spends billions of dollars to ensure safety. A recent False Claims Act settlement in the District of Rhode Island is a clear example. Companies that fail to meet the standards they claim to uphold risk huge financial penalties.

    Illumina Inc., a leading genomic sequencing company, agreed to pay $9.8 million after the Justice Department alleged it sold systems to federal agencies that had serious cybersecurity vulnerabilities between 2016 and 2023.

    A whistleblower inside the company triggered the case. Erica Lenore, a former Director for Platform Management, received $1.9 million for stepping forward under the False Claims Act.  

    If you work in cybersecurity, IT, compliance, or product management for a company that sells to the federal government, you may have noticed similar failures. These include unpatched vulnerabilities or a lack of essential security testing.

    Under the False Claims Act, neglecting these failures can result in multimillion-dollar liabilities for your employer. It can also lead to multimillion-dollar rewards for you if you take action.

    For professionals concerned about exposure, Find Corporate Waste (FCW) protects whistleblowers who want to remain anonymous. We submit filings through the corporation, not you personally. This ensures maximum confidentiality. It also allows you to receive your fair share of any recovery.  

  • Lockheed Martin Pays $70 Million to Settle False Claims Allegations Over Defective Pricing in Missile Contracts

    In a significant enforcement action announced by the U.S. Department of Justice, Lockheed Martin Corporation has agreed to pay $70 million to resolve allegations that it violated the False Claims Act (FCA) by submitting defectively priced contracts for missile sales to the Department of Defense.

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    The case centers on the Terminal High Altitude Area Defense (THAAD) system, a key component of U.S. missile defense architecture. DOJ officials alleged that Lockheed Martin’s subcontractor, L3Harris Technologies, intentionally provided inaccurate cost data during negotiations, which Lockheed Martin then passed on to the government without adequate disclosure or correction. As a result, the U.S. Army Missile Command allegedly awarded contracts based on inflated cost and pricing data, causing the government to overpay for missile components.

    This case was brought to light by a private whistleblower, known legally as a relator, who filed a lawsuit under the qui tam provisions of the False Claims Act. These provisions empower private citizens to sue on behalf of the federal government when they possess non-public evidence of fraud involving taxpayer dollars.

    In return, whistleblowers may be eligible to receive a portion of the recovery. In this case, the relator will receive $13.7 million from the settlement—a recognition of the role that private citizens can play in holding large corporations accountable.

    At Find Corporate Waste, we believe that the integrity of public spending starts with accountability. This case against Lockheed Martin highlights how whistleblowers can protect taxpayer dollars and expose fraudulent schemes that would otherwise go unchecked. We are committed to supporting those who step forward, guiding them through the complex landscape of False Claims Act litigation, and ensuring their efforts lead to meaningful recovery for the American people. If you have information about fraud, waste, or abuse of government funds, Find Corporate Waste is here to help you take the first step.