A former pricing analyst for Skokie, Illinois defense contractor MPC
Products Corporation will receive $4.5 million for his part in uncovering a
decade-long scheme of overbilling the federal government.
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Download NowThe analyst worked for MPC from 1990 to 2000, when he alleged
that he was fired on a pretext for refusing to falsify costs on government
contracts. The following year, he was rehired into his former position, where
he secretly gathered information for the Federal Bureau of Investigation (FBI),
at times wearing a wire to record conversations. As a result of the
investigation, the FBI charged MPC with overcharging the federal government on
11 contracts, resulting in a $2.5 million criminal fine and a $22.5 million
civil judgment. Two former MPC executives await arraignment on individual
charges of obstruction of a federal audit.
In 2003, the analyst filed a lawsuit under the federal False
Claims Act, which allows “whistleblowers” who uncover fraud in government
contracts to receive up to 25 percent of recovered funds. In addition to the
employee’s $4.5 million share of the recovered funds, MPC has agreed to pay
$252,320 for his expenses and legal fees.