June 15, 2022

DynCorp International, LLC and Damco U.S.A., Inc. Pay $25.4M to End False Claims Act Suit Alleging Fraud Related to Military Contract

HOUSTON, June 15, 2022 /PRNewswire/ — DynCorp International, LLC and Damco U.S.A., Inc. have agreed to pay $25.4 million to resolve a False Claims Act suit alleging that the companies submitted false claims for payment to the Department of Defense related to freight forwarding services provided in Afghanistan as part of the LOGCAP IV program. The settlement resolves a lawsuit against the companies filed in 2014 by two former employees of DynCorp on behalf of the federal government.

The lawsuit claimed that from October 2011 through December 2014, DynCorp, LOGCAP IV prime contractor, and its subcontractor, Damco, submitted claims for payment to the United States under LOGCAP IV related to the provision of goods to United States military bases in Afghanistan. The lawsuit alleged that the claims for payment contained unallowable accessorial charges related to freight forwarding services, as well as indirect costs and fees applicable to oversize charges and air fuel surcharges.  The government and relators received about $15 million.

The settlement is neither an admission of liability by DynCorp or Damco nor a concession by the relators that their claims were not well founded.

The relators were represented by Joel Androphy and Janis Gorton of Berg & Androphy, Greg Dykeman and Michael Hendryx of Strong Pipkin Bissell & Ledyard, and Sarah Frazier of the Law Office of Sarah Frazier. Berg & Androphy’s Director of Investigations, James “Hal” Francis, also assisted by providing freight forwarding expertise.

Although the United States declined to intervene in the matter, it remained a valuable asset for the duration of the case. The United States was represented by Brit Featherston, United States Attorney for the Eastern District of Texas, and Michael Lockhart, Assistant United States Attorney, Eastern District of Texas. The superb investigation conducted by the Defense Criminal Investigative Service’s Houston Resident Agency (RA) and Quad Cities Post of Duty, and the Army Criminal Investigation Division’s Rock Island Fraud RA were instrumental in reaching this resolution.  Also notable, the Defense Contract Management Agency and the Defense Contract Audit Agency provided extensive assistance during the case’s investigative stage and throughout the litigation.

The case is United States ex rel. Robert Reddell, et al. v. DynCorp International, LLC, et al., case number 1:14-cv-00086, in the United States District Court for the Eastern District of Texas.

Contact: Joel Androphy and Janis Gorton, Berg & Androphy, 713.529.5622.

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