Contractor Caught Selling Defective Products to U.S. Military

The False Claims Act was originally enacted during the Civil War because contractors regularly sold defective supplies to the military. Today, the government considers defective products fraud to be an enforcement priority, especially when it involves our safety or national security. One contractor recently admitted to defrauding the government out of millions of dollars by providing substandard products to the U.S. Navy.

Between 2012 and 2014, Colas Djibouti held several contracts to provide concrete to U.S. Department of Defense and Department of State installations abroad. The company was required to provide high-quality concrete within strict specifications. However, rather than provide the concrete it promised, the company provided substandard concrete and falsified test results to hide its defects from the government. These defects had the potential to cause cracking and corrosion, significantly impairing the long-term durability of the concrete.

A joint investigation by the U.S. Department of Justice, the Defense Criminal Investigative Service (DCIS), and the Naval Criminal Investigative Service (NCIS) uncovered the contractor’s fraud. In February 2021, the company pled guilty to a federal criminal charge and agreed to pay $12.5 million, including $3.9 million to resolve its liability under the False Claims Act (FCA).

“The members of our armed forces risk their lives every day, and they rely on contractors to produce high-quality equipment and supplies,” says Baron & Budd attorney Noah Rich. “Defective products add danger to an already dangerous job, and whistleblowers should be on the lookout for unscrupulous contractors who cut corners.”

The government relies on whistleblowers to uncover government contracting fraud. Under the FCA, a whistleblower is entitled to receive 15% to 30% of the amount the government recovers in a successful enforcement action. If you have evidence that a person or company is committing fraud against the government, an experienced whistleblower attorney can help you file an effective complaint and maximize your share of any recovery.

Our Team

With more than 30 years of experience, the attorneys on Baron & Budd’s whistleblower representation team have represented dozens of clients in government fraud cases returning over $5.4 billion to federal and state agencies, with whistleblower recovery shares as high as 49%. They are ready to help if you have evidence of government contracting fraud.

Please call (866) 401-5971 or complete our contact form if you would like more information. For more information, see What You Need to Know About Becoming a Whistleblower. Please understand that contacting us does not mean that you have established an attorney-client relationship with Baron & Budd, P.C.

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