False Claims Act Case Under SBA Regulations Wins Relator Nearly $5 Million
Along with another firm, we represented the Relator in a False Claims Act case against Afognak Native Corporation, an Alaska Native Corporation (ANC) based in Kodiak, Alaska, and its subsidiary, Alutiiq, LLC. Our client was the Compliance Officer for Afognak, who learned that his company was cheating the government. Afognak had set up “sham” corporations to take advantage of the 8(a) contracting program run by the U.S. Small Business Administration (SBA) that gives significant bidding advantages for federal contracts to native and other minority-owned businesses. The Department of Justice declined to intervene our qui tam lawsuit, so we forged ahead and litigated the case as a "non-intervened" case. After much litigation, Afognak agreed to settle the case by paying back $16 million to the federal government. The reward to the whistleblower in this case was 29% of the recovery, amounting to $4,640,000.
Court: United States District Court for the District of Alaska