CLEVELAND, May 18, 2022 /PRNewswire/ -- In U.S. ex rel. USN4U v. WOLF CREEK FEDERAL SERVICES 6th Circuit Case No. 20-4246, a whistleblower alleged Wolf Creek submitted falsely inflated project estimates to NASA for facilities maintenance projects resulting in the negotiation of fraudulently induced, exorbitant contract prices.
According to the 2017 Complaint filed by the Mendenhall Law Group, when Wolf Creek performed NASA projects, work group leads allegedly instructed certain "participating union employee[s]" to falsely report their labor hours to "justify the inflated [labor] estimate." The software used to track labor hours "has no mechanism to verify whether an employee worked on a work order, or even showed up for work," and work group leads did not have to verify the labor hours reported by their subordinates.
The Sixth Circuit Court of Appeals ruled that:
The amended complaint details four specific allegations of fraud, thus meeting the requirement that the relator provide examples of the fraudulent scheme. When a relator "alleges 'a complex and far-reaching fraudulent scheme,' then that scheme must be pleaded with particularity and the complaint must also 'provide[ ] examples of specific' fraudulent conduct that are 'representative samples' of the scheme." Prather, 892 F.3d at 830
At the pleading stage, it is sufficient that USN4U set forth a...
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