Qui Tam Whistleblower in False Claims Act Case Receives $7.3 Million in False Claims Case

From time to time on this whistleblower blog we report cases of significance involving successful whistleblower claims filed under the federal False Claims Act. We read about such a case today in the news involving a $28 million settlement with National Air Cargo. It appears that the government determined that National Air Cargo had billed the government $4.4 million for various military shipments delivered by that company between the calendar years 1999 and 2005. The false claim was that National Air Cargo had billed the government for higher air rates rather than the actual ground deliveries made. National Air Cargo also claimed that deliveries were made sooner than they actually were which served as a pretext for the higher shipment rates. The government’s investigation focused on shipments to military bases within the United States according to the government’s Press Release.
We read about such a case today in the news involving a $28 million settlement with National Air Cargo. It appears that the government determined that National Air Cargo had billed the government $4.4 million for various military shipments delivered by that company between the calendar years 1999 and 2005. The false claim was that National Air Cargo had billed the government for higher air rates rather than the actual ground deliveries made. National Air Cargo also claimed that deliveries were made sooner than they actually were which served as a pretext for the higher shipment rates. The government’s investigation focused on shipments to military bases within the United States according to the government’s Press Release.

As a result of the scheme which was reported to the government by a whistleblower, National Air Cargo agreed to pay $4.4 million in restitution, a fine double that amount, a civil forfeiture fine in the amount of $7.4 million and $7.3 million to settle a civil lawsuit brought by the whistleblower. The whistleblower’s identity was withheld by the Court apparently under a Confidentiality Agreement.

This case is yet another in the growing and long list of cases where government contractors have been proven to have submitted false claims for reimbursement. Once again, the False Claims Act works as was intended by Congress. It exposes the fraud, punishes the wrongdoer, and rewards the whistleblower for bringing forth the truth. Regrettably, fraud cases continue to occur at an ever increasing rate, but the good news is that occasionally justice is done. The False Claims Act remains the most valuable tool in the government’s arsenal to combat fraud perpetrated against it.