March 09, 2006
A whistle-blower case against defense contractor Custer Battles has resulted in a jury verdict against the company and its owners.
The suit, brought under the qui tam provisions of the False Claims Act, alleged that the company defrauded the government in the distribution of new Iraqi currency following the collapse of Saddam Hussein’s government.
The jury trebled the $3 million dollars in actual damages, added penalties and came back with a judgment for $10 million.
Another trial against Custer Battles, brought by the same whistle blowers, will decide whether the company also defrauded the government on a $16.8 million security contract for Baghdad International Airport.
The Corporate Crime Reporter reported on the verdict on March 9, 2006.