Gallup Settles Contract Fraud Claims for $10.5M; Whistleblower to Get $1.9M
The polling and market research firm Gallup Organization has agreed to pay $10.5 million to resolve allegations that the company violated the False Claims Act and the Procurement Integrity Act for conduct involving several of its federal government contracts and subcontracts, the U.S. Department of Justice announced this month. Gallup is headquartered in Washington, D.C.
The government alleged that Gallup knowingly overestimated labor hours in proposals to the U.S. Mint and State Department for contracts that were to be awarded without competition; as a result, the two federal agencies awarded Gallup contracts at inflated prices. Gallup also allegedly engaged in improper employment negotiations with a then-Federal Emergency Management Agency (FEMA) official, Timothy Cannon, in order to obtain a FEMA subcontract at an inflated price and additional FEMA funding after the subcontract was awarded.
Separately, in April 2013, Cannon paid the government $40,000 to resolve allegations that he violated the Procurement Integrity Act by improperly negotiating for and accepting an offer of employment from Gallup while being personally and substantially involved in Gallup’s subcontract with FEMA. In related criminal proceedings, on January 15, 2013, Cannon pled guilty to a federal conflict of interest statute, and was subsequently sentenced to probation.
The lawsuit was originally filed by Michael Lindley, a former Gallup employee, under the whistleblower provision of the False Claims Act. The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Lindley will receive $1.9 million as his share of the 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 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.