TesTech and Ceso Settle Fraud Claims for $2.9M; Whistleblower to Get $562K
Ohio-based companies TesTech and CESO have agreed to pay $2.88 million to resolve allegations that they knowingly submitted or caused the submission of false claims to federal agencies when they falsely claimed disadvantaged business status in order to obtain federal funds related to a number of federal transportation projects, the U.S. Department of Justice announced yesterday.
The Department of Transportation’s Disadvantaged Business Enterprise (DBE) program encourages the use of woman- and minority-owned businesses on federally funded transportation projects. Contractors on such projects must make good-faith attempts to meet DBE participation goals as a condition of federal funding.
The settlement resolves allegations that the defendants falsely claimed disadvantaged business status for TesTech, a civil engineering firm, on numerous highway and airport construction projects in Ohio, Indiana, Michigan, and Kentucky. The United States alleged that TesTech was owned and controlled by CESO, a non-disadvantaged firm, and that its owners, the Oakes, falsely claimed that TesTech was owned by Sherif Aziz and qualified as a minority-owned business in order to take advantage of the DBE program.
The lawsuit was originally filed by Ryan Parker, a former TesTech employee, under the whistleblower provisions of the False Claims Act. Under the False Claims Act, a private citizen with knowledge of fraud perpetrated against the government can sue on behalf of the government and claim a share in the recovery. Parker will receive $562,370 of the settlement amount.
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.