SAIC Settles Contract Fraud Claims for $11.75M; Whistleblower Share TBD

Virginia-based Science Applications International Corporation (SAIC) has paid $11.75 million to resolve allegations that the company violated the False Claims Act by charging inflated prices against grant money provided by the U.S. government to train first responder personnel to prevent and respond to terrorist attacks, the U.S. Department of Justice announced last week.

SAIC received federal grant money through the New Mexico Institute of Mining and Technology to provide course management, development, and instruction to first responder personnel to prevent and respond to terrorist attacks involving explosive devices.  The United States alleged that SAIC’s cost proposals falsely represented that SAIC would use far more expensive personnel to carry out its efforts than it intended to use and actually did use, resulting in inflated charges to the United States.

The lawsuit was originally filed by Richard Priem, SAIC’s former project manager for the first responder training program, under the whistleblower provisions of the False Claims Act.  Under the False Claims Act, a private citizen with knowledge of fraud against the government can sue on behalf of the government and share in the recovery.  Priem’s share has not yet been determined.

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.