In what the Department of Justice characterized as a case of “wartime profiteering,” Dyncorp International, LLC and The Sandi Group have agreed to pay a total of $8.7 million to settle false claims act allegations.  A pair of whistleblowers levied claims against the two contractors, alleging fraud in the performance of certain Iraqi reconstruction contracts.  DOJ contends that Dyncorp falsely inflated claims under a contract for the construction of container camps. The Sandi Group is accused of claiming “danger pay” for its employees when, in fact, no such pay was due.

FraudBlawg previously reported on Dyncorp in the context of the disturbing accidental murder of one Dyncorp employee by another during a drunken party, here.  Although the malfeasance of the defense contracting community in Iraq has been well-chronicled by the media, there have been few successful False Claims Act cases against these companies before now.  In yesterday’s press release, U.S. Attorney Ronald C. Machen emphasized DOJ’s “commitment to aggressively investigating wartime profiteering that corrupts the integrity of our government contracting process.”  Hopefully this is the first settlement of many. 

To report defense contracting fraud, contact Frohsin & Barger.