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U.S. secures $2.5 million settlement with contractor over alleged False Claims Act violations

By Mark Iandolo | Jun 14, 2017

DALLAS (Legal Newsline) — The U.S. Department of Justice announced June 5 that Integrated Medical Solutions Inc. (IMS) and former President Jerry Heftler will pay $2.475 million after allegations of violating the False Claims Act and Anti-Kickback Act.

“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said acting assistant attorney general Chad A. Readler of the department’s Civil Division.  

“When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.”

According to allegations, IMS committed the violations while working on federal contracts with the U.S. Bureau of Prisons (BOP). IMS purportedly paid BOP employee and business administrator Cary Hudson to obtain favorable treatment during the contracting process.

“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. attorney John R. Parker for the Northern District of Texas.

Handling the case were the Civil Division’s commercial litigation branch and the U.S. Attorney’s Office for the Northern District of Texas. The Department of Justice Office of the inspector general assisted.

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U.S. Department of Justice