CIA Contractors to Pay $3M Settlement, Whistleblower to Get $585K

Posted: 03/08/2013  browse the blog archive

American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC have agreed to pay the U.S. government $3 million to settle allegations that they violated the False Claims Act and the Anti-Kickback Act while bidding on a contract with the CIA, the U.S. Justice Department announced today.  The United States alleged that the three companies provided CIA employees and outside consultants with meals, entertainment, sporting tickets, and other gifts and gratuities while bidding on a contract to provide the CIA with supplies and services.

Anixter sales representative William Jones first initiated the lawsuit under the qui tam, or whistleblower, provisions of the federal False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud or false claims to sue on behalf of the government and share up to 30% of the recovery obtained by the government.  Jones will receive $585,000 as his share in this settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud perpetrated against the government including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.