A few weeks ago, the Internal Revenue Service paid out a very large whistleblower award to an accountant who reported fraud on the part of his former company in the payment of federal income tax. The award was the first to be issued to a whistleblower by the IRS. As California whistleblower lawyers, we know the importance of these cases to the public welfare. Whistleblowers are people who have the courage to come forward when they see wrongdoing in their workplace.
Recently, a very different matter was settled with the federal government involving whistleblowers. Although the companies deny wrongdoing, DynCorp International Inc., the largest U.S. contractor in Afghanistan and its subcontractor have settled a case involving what the government claimed were construction work and other services that were not actually performed. The company has agreed to pay $7.7 million and its subcontracter $1 million, to resolve claims that costs for services that it was alleged to have performed in Iraq were inflated.
The lawsuit was apparently filed by former employees who became what are known as whistleblowers. They informed the government of the false claims for payment that were being made by these companies when services had not in fact been rendered. The whistleblowers will be receiving about $481,710 for their honesty in this matter.