Allegedly Mischarged Labor Costs Under Military Aircraft Engine Contracts
WASHINGTON, DC – CDI Corporation has agreed to pay the United States $1.95 million to resolve allegations in a lawsuit brought under the False Claims Act that CDI wrongfully charged labor costs to work orders under military aircraft engine contracts for The General Electric Company (GE), the Justice Department announced today. According to the government’s allegations, the work for which the military was charged was not actually performed.
CDI is headquartered in Philadelphia. The CDI regional office, located in Sharonville, Ohio, was the subject of the False Claims Act allegations. CDI is a supplier of engineering services under time and material subcontracts with GE Transportation and Aviation divisions for engineering work on commercial and military projects.
The civil investigation examined CDI’s labor and billing records from Jan. 15, 2001, to Dec. 31, 2006. The civil investigation found that during this time period, CDI directed the mischarging of employees’ labor costs to purchase orders that would be reimbursed by the U.S. military. In fact, the employees did not perform the work billed to those military projects. CDI entered these mischarged labor costs in increments of 0.5 hours or less to evade detection.
“Those who contract with the U.S. military must do so fairly and honestly,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “Taxpayers should not foot the bill when government contractors charge for work that was not done.”
The lawsuit was filed in the federal district court in Cincinnati by Vicki Lanich, a former CDI employee. Under the qui tam or whistleblower provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the recovery. Under the settlement, the whistleblower will receive $360,750.
This civil investigation was conducted by special agents of the U.S. Air Force Office of Special Investigations at Wright-Patterson Air Force Base near Dayton, Ohio. Audit support was provided by the Defense Contract Audit Agency, Mid-Atlantic Region. The settlement was negotiated by the Commercial Litigation Branch of the Justice Department’s Civil Division.
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CDI Corporation own MRINetwork also known as Management Recruiters International, a global recruitment franchise. They have a track record of misrepresenting the truth. For years they falsely portrayed someone as a regular franchisee who had no valid franchise agreement and who was not paying them royalties. This got so bad that he eventually owed them more than £170,000 UK Pounds or approx. $300,000 US Dollars in unpaid royalties. MRINetwork continued with this deception for years and fooled all real franchisees and clients alike. Read the facts about this and more questionable business practices by MRINetwork and their owners at http://www.cdicorp.info
Specifically read about:
Roger H Ballou makes bare faced lies to shareholders. Read his actual words. http://www.cdicorp.info/rogerhballou-denial.html
Joseph R Seiders affidavit misstatements made under oath http://www.cdicorp.info/josephrseidersaffidavit.html
Sarbanes-Oxley concerns – was the debt correctly written-off? See why Roger H Ballou is so coy about clarifying his legal obligations under SOX rules http://www.cdicorp.info/sarbanesoxleyconcerns.html
The years of misrepresentation by MRI Network http://www.cdicorp.info/mrimisrepresentation.html
MRINetwork Breach of Franchise Contract http://www.cdicorp.info/rogerhballou-damage-to-mrinetwork.html
Steve Mills denies responsibility http://www.cdicorp.info/stevemillsdeniesresponsibility.html
Steve Mills applies coercion to franchisee in attempt to gain get-out clause for MRI Network negligence. http://www.cdicorp.info/management-recruiters-international.html
Steve Mills lies on oath. Read his actual words spoken on oath to Ohio Courts. http://www.cdicorp.info/steve-mills-mri-network.html
Steve Mills COO of MRIWW makes crass and illogical statements whilst on oath. Read his actual words http://www.cdicorp.info/mri-network-steve-mills.html
Management Recruiters International Break agreements. Read how Steve Mills made and then broke written agreements with franchisee. http://www.cdicorp.info/management-recruiters-international-ethics.html
Anders Elite, a subsidiary of CDI Corporation, has been found guilty of anti-competitive behaviour by UK Office of Fair Trading (OFT). They have been fined £7.6 Million Pounds (approximately $12.2 million US Dollars). http://www.cdicorp.info/anders-elite.html
Read the facts and form your own opinion on their ethics and actual business practices of MRINetwork and their owners CDI Corporation.