Quantadyn Corporation And Owner Settle False Claims Act Allegations of Bribery To Obtain Government Contracts For Simulators

The Department of Justice announced today that QuantaDyn Corporation (QuantaDyn), headquartered in Ashburn, Virginia, has agreed to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea by the company.  As part of the plea agreement, QuantaDyn has agreed to pay $37,757,713.91 in restitution, which also will resolve the company’s civil False Claims Act liability for the scheme.  William T. Dunn Jr., the majority owner, President, and Chief Executive Officer of QuantaDyn, has separately paid $500,000 to resolve his personal False Claims Act liability. 

“When government contractors pay bribes to military contracting officials to obtain contracts, they prevent both our military and the American taxpayers from receiving products that are procured fairly and objectively and at a reasonable price,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our continuing commitment to protecting the integrity of the government’s procurement process and ensuring that is untainted by fraud and corruption.” 

“I am proud that our team and our law-enforcement partners were able to obtain justice for the American taxpayer in this case.  We will not tolerate fraud against important federal programs,” stated U.S. Attorney John F. Bash for the Western District of Texas.

“The integrity of GSA’s contracting is vital to good government,” said U.S. General Services Administration (GSA) Inspector General Carol Ochoa.  “Our special agents have been tireless in investigating corruption, and we will continue to work with our law enforcement partners to vigorously prosecute it wherever we find it.”

Founded in 2000, QuantaDyn is a privately held software engineering firm specializing in developing training simulation systems for Department of Defense agencies, including the Air Force and the Air National Guard, both as a prime contractor and a subcontractor.  

The civil settlement announced today, which was based on the company and Dunn’s ability to pay, resolves allegations that QuantaDyn, during the time period when Dunn was President, engaged in a bribery scheme to steer the award of government contracts for training simulators to QuantaDyn.  The United States alleged that while Dunn was QuantaDyn’s President, the company formed a corrupt partnership with an Air Force contracting official who provided procurement-sensitive information to QuantaDyn during the pre- and post-award phases of the contract in exchange for bribes.  The United States contended that, as a result of this scheme, QuantaDyn caused a prime contractor to submit false invoices to the United States.

Contemporaneous with the civil settlement, U.S. Attorney John F. Bash for the Western District of Texas announced that the United States and QuantaDyn have entered into a plea agreement to resolve criminal allegations related to the bribery scheme.  On Jan. 15, 2020, the U.S. Attorney’s Office for the Western District of Texas unsealed indictments against QuantaDyn, the former Air Force contracting official, and other individuals.  Under the plea agreement, QuantaDyn has agreed to plead guilty to conspiracy to commit wire fraud, serve a five-year term of probation and to take certain remedial measures, and pay $37,757,713.91 in restitution, a criminal penalty of $6,300,000, and forfeiture of $7,099,863.77.

This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Western District of Texas; the GSA Office of Inspector General (OIG), Greater Southwest and Rocky Mountain Investigations Division; the Defense Criminal Investigative Service (DCIS), Southwest Field Office; the U.S. Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio; the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (CID/MPFU), Southwestern Fraud Field Office; the Internal Revenue Service-Criminal Investigation (IRS-CI); and the Defense Contract Audit Agency (DCAA), Headquarters, Operations Investigative Support Division (OIS).

Except as admitted in the plea agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability. 

Hits: 5

News Network

  • Statement By Department Of Justice Spokesperson Kerri Kupec On The Execution Of William Emmett Lecroy Jr.
    In Crime News
    Department of Justice Spokesperson Kerri Kupec has issued the following statement.
    [Read More…]
  • Panama
    In Travel
    I am a… [Read More…]
  • Malta Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • DOD Critical Technologies: Plans for Communicating, Assessing, and Overseeing Protection Efforts Should Be Completed
    In U.S GAO News
    Critical technologies—such as elements of artificial intelligence and biotechnology—are those necessary to maintain U.S. technological superiority. As such, they are frequently the target of theft, espionage, and illegal export by adversaries. The Department of Defense (DOD) has outlined a revised process (see figure) to better identify and protect its critical technologies including those associated with acquisition programs throughout their lifecycle or those early in development. Prior DOD efforts to identify these technologies were considered by some military officials to be too broad to adequately guide protection. The revised process is expected to address this by offering more specificity about what elements of an acquisition program or technology need to be protected and the protection measures DOD is expected to implement. It is also expected to support DOD's annual input to the National Strategy for Critical and Emerging Technologies, which was first published in October 2020. Overview of DOD's Revised Process to Identify and Protect Critical Acquisition Programs and Technologies DOD began implementing this process in February 2020, and officials expect to complete all steps for the first time by September 2021. DOD has focused on identifying critical acquisition programs and technologies that need to be protected and how they should be protected. It has not yet determined how it will communicate the list internally and to other agencies, which metrics it will use to assess protection measures, and which organization will oversee future protection efforts. By determining the approach for completing these tasks, DOD can better ensure its revised process will support the protection of critical acquisition programs and technologies consistently across the department. Once completed, the revised process should also inform DOD and other federal agencies' protection efforts. Military officials stated they could use the list of critical acquisition programs and technologies to better direct resources. Officials from the Departments of State, Commerce, and the Treasury stated that they could use the list, if it is effectively communicated, to better understand what is important to DOD to help ensure protection through their respective programs. The federal government spends billions annually to develop and acquire advanced technologies. It permits the sale and transfer of some of these technologies to allies to promote U.S. national security, foreign policy, and economic interests. However, the technologies can be targets for adversaries. The John S. McCain National Defense Authorization Act for Fiscal Year 2019 requires the Secretary of Defense to develop and maintain a list of acquisition programs, technologies, manufacturing capabilities, and research areas that are critical for preserving U.S. national security advantages. Ensuring effective protection of critical technologies has been included on GAO's high-risk list since 2007. This report examines (1) DOD's efforts to identify and protect its critical technologies, and (2) opportunities for these efforts to inform government protection activities. GAO analyzed DOD critical acquisition program and technologies documentation, and held interviews with senior officials at DOD and other federal agencies responsible for protecting critical technologies. GAO is recommending that DOD specify how it will communicate its critical programs and technologies list, develop metrics to assess protection measures, and select the DOD organization that will oversee protection efforts beyond 2020. DOD concurred with the first recommendation and partially concurred with the second and third. GAO maintains the importance of all recommendations in this report. For more information, contact William Russell at (202) 512-4841 or russellw@gao.gov.
    [Read More…]
  • Nuclear Waste: Congressional Action Needed to Clarify a Disposal Option at West Valley Site in New York
    In U.S GAO News
    The Department of Energy (DOE) has made progress in cleaning up radioactive waste at the site of the West Valley Demonstration Project in New York State. In the 1960s and 1970s, a commercial facility at the site reprocessed spent (used) nuclear fuel into reusable nuclear material—creating various wastes that remained on-site after the facility closed in 1976. Since 2011, DOE has demolished 51 of 55 structures there and disposed of about 1.3 million cubic feet of low-level waste to off-site locations. It has also placed solidified high-level waste into interim on-site storage (see fig.). In addition, DOE has processed for interim on-site storage about 30,000 cubic feet of transuranic waste (which is contaminated with elements that have an atomic number greater than uranium). As of February 2020, DOE reported spending about $3.1 billion on contracted cleanup activities, but it cannot estimate the cleanup's final cost until it decides how it will address the remaining waste. High-Level Waste from the West Valley Demonstration Project in Interim On-Site Storage, March 2017 DOE has been unable to dispose of the high-level and transuranic wastes stored at West Valley because there are no facilities authorized to accept these wastes. DOE has identified two potential options for disposal of the transuranic waste: the federal Waste Isolation Pilot Plant in New Mexico and a commercial facility in Texas. However, the New Mexico facility is authorized to accept only waste from atomic energy defense activities, and DOE does not consider West Valley waste to be from atomic energy defense activities. Regarding the Texas facility, state regulations preclude disposal of the waste there. In 2017, DOE submitted to Congress a report on all disposal options, as required by the Energy Policy Act of 2005. Pursuant to this act, DOE must await action by Congress before making a final decision, and Congress has not yet acted. The West Valley Demonstration Project Act, enacted in 1980, requires DOE to assist with cleanup activities at the site of the nation's only commercial facility for reprocessing spent nuclear fuel. The site contained 600,000 gallons of liquid high-level waste, radioactively contaminated structures and soils, and buried radioactive waste. In 2011, DOE began the first phase of its decommissioning plan, which included demolishing above-ground structures and removing contaminated soils. The West Valley Reauthorization Act and the Senate Committee Report No. 116-48 included provisions for GAO to review progress on the cleanup at West Valley. GAO's report examines (1) the status of the cleanup and (2) DOE's options for disposing of the remaining radioactive waste. GAO reviewed DOE's data on cleanup costs and waste volumes and its decommissioning plans, as well as laws, regulations, and policies governing radioactive waste disposal. GAO also interviewed officials from DOE and the state of New York, as well as other stakeholders. Congress should consider taking action to provide a legal option for the disposal of West Valley's transuranic waste. For more information, contact Allison Bawden at (202) 512-3841 or BawdenA@gao.gov.
    [Read More…]
  • Secretary Michael R. Pompeo Remarks to the Press
    In Crime News
    Michael R. Pompeo, [Read More…]
  • United States and Morocco Sign Cultural Property Agreement
    In Crime Control and Security News
    Office of the [Read More…]
  • Special Representative for Iran and Venezuela Elliott Abrams Travels to Middle East
    In Crime Control and Security News
    Office of the [Read More…]
  • Genetics, Diagnosis, Treatment: NIH Takes On Sickle Cell Disease
    In Human Health, Resources and Services
    Each year, some 150,000 [Read More…]
  • Justice Department Sues Monopolist Google For Violating Antitrust Laws
    In Crime News
    Today, the Department of Justice — along with eleven state Attorneys General — filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to stop Google from unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets and to remedy the competitive harms. The participating state Attorneys General offices represent Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, South Carolina, and Texas.
    [Read More…]
  • Former Venezuelan National Treasurer and Her Spouse Charged in Connection with International Bribery and Money Laundering Scheme
    In Crime News
    A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment filed Tuesday for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme. An alleged co-conspirator was previously charged in the original indictment.
    [Read More…]
  • Justice Department Brings Enforcement Action Against Centurylink
    In Crime News
    The Department of Justice announced today that CenturyLink, Inc. has agreed to settle allegations that CenturyLink violated the court-ordered Final Judgment designed to prevent anticompetitive effects arising from its acquisition of Level 3 Communications, Inc. 
    [Read More…]
  • Justice Department Issues Favorable Business Review Letter To ISDA For Proposed Amendments To Address Interest Rate Benchmarks
    In Crime News
    The Department of Justice’s Antitrust Division announced today that it has completed its review of the proposal by the International Swaps and Derivatives Association Inc. (ISDA) to amend its standardized model documentation for derivatives to account for the potential discontinuation of certain interbank offered rates (collectively referred to as “IBORs”).  The department has concluded, based on the representations in ISDA’s letter request, including its description of certain safeguards, that ISDA’s proposed amendments to its standardized documentation are unlikely to harm competition.  Therefore, the department does not presently intend to challenge ISDA’s proposed amendments to its standardized documentation for derivatives.
    [Read More…]
  • Three Individuals Charged with Arranging Adoptions from Uganda and Poland Through Bribery and Fraud
    In Crime News
    Three women were charged in a 13-count indictment filed on Aug. 14 in the Northern District of Ohio for their alleged roles in schemes to corruptly and fraudulently procure adoptions of Ugandan and Polish children through bribing Ugandan officials and defrauding U.S. adoptive parents, U.S. authorities, and a Polish regulatory authority.
    [Read More…]
  • Secretary Pompeo’s Meeting with French Foreign Minister Le Drian
    In Crime Control and Security News
    Office of the [Read More…]
  • Former DoD Employee Sentenced for Violently Assaulting Two Neighbors While Living Overseas
    In Crime News
    An Oklahoma City, Oklahoma man was sentenced today to 60 months in prison followed by three years of supervised release in the Western District of Oklahoma for assaulting two neighbors inside their apartment in Okinawa, Japan, while working for the U.S. Armed Forces overseas as a civilian engineer.
    [Read More…]
  • Justice Department Acts To Shut Down Fraudulent Websites Exploiting The Covid-19 Pandemic
    In Crime News
    The United States Department of Justice announced today that it has obtained a Temporary Restraining Order in federal court to combat fraud related to the coronavirus (COVID-19) pandemic. The enforcement action, filed in Tampa, Florida, is part of the Justice Department’s ongoing efforts prioritizing the detection, investigation, and prosecution of illegal conduct related to the pandemic. The action was brought based on an investigation conducted by United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in coordination with the Vietnam Ministry of Public Security.
    [Read More…]
  • The Impact of the Pandemic on Pregnancy: A Research Response
    In Human Health, Resources and Services
    Maternal health and [Read More…]
  • Request Denied for Preliminary Injunction on the Administration’s Landmark New Regulations Implementing under the National Environmental Policy Act
    In Crime News
    On Friday, Sept. 11, Judge James T. Jones of the U.S. District Court for the Western District of Virginia denied a request for a preliminary injunction against the Administration’s landmark new regulations implementing under the National Environmental Policy Act (NEPA), which will modernize environmental review, enhance the information-gathering process, and facilitate more meaningful public participation in the protection of our environment. These regulations had not been subject to a major revision since 1978, when they were first promulgated, and they were in need of modernization to improve the infrastructure permitting process.
    [Read More…]
  • Iran and China, the Totalitarian Twins
    In Human Health, Resources and Services
    Keith Krach, Under [Read More…]
  • Former Foreign Exchange Trader Sentenced To Prison For Price Fixing And Bid Rigging
    In Crime News
    Akshay Aiyer, a former currency trader at a major multinational bank, was sentenced to serve eight months in jail and ordered to pay a $150,000 criminal fine for his participation in an antitrust conspiracy to manipulate prices for emerging market currencies in the global foreign currency exchange (FX) market, the Justice Department announced today.
    [Read More…]
  • Visa Restrictions on Tanzanians for Undermining the Democratic Process and Human Rights
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Defendant Pleads Guilty In Multi-Million Dollar Prize Notification Scam Affecting Elderly Victims
    In Crime News
    A Las Vegas area resident charged with perpetrating a prize-notification scheme that bilked victims out of more than $10 million pleaded guilty today, the Department of Justice announced.
    [Read More…]
  • U.S. Government Collects $7 Million in Iranian Assets for Victims of Terrorism Fund
    In Crime News
    The Justice Department announced the United States has collected $7 million of Iranian funds that will be allocated to provide compensation to American victims of international state-sponsored terrorism.
    [Read More…]
  • United States Seizes More Domain Names Used by Foreign Terrorist Organization
    In Crime News
    The United States has [Read More…]
  • Six Men Charged for Roles in Scheme to Defraud Businesses of Luxury Goods and Services
    In Crime News
    Six men were charged in an indictment unsealed on Wednesday for their alleged participation in a nation-wide scheme to defraud dozens of businesses across the United States of luxury goods and services announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department's Criminal Division and U.S. Attorney Andrew Lelling of the District of Massachusetts.
    [Read More…]
  • Veteran Suicide: VA Needs Accurate Data and Comprehensive Analyses to Better Understand On-Campus Suicides
    In U.S GAO News
    The Department of Veterans Affairs' (VA) process for identifying on-campus suicides does not include a step for ensuring the accuracy of the number of suicides identified. As a result, its numbers are inaccurate. VA's Veterans Health Administration (VHA) first started tracking on-campus veteran suicides in October 2017, and uses the results to inform VA leadership and Congress. GAO reviewed the data and found errors in the 55 on-campus veteran suicides VHA identified for fiscal years 2018 and 2019, including 10 overcounts (deaths that should not have been reported but were) and four undercounts (deaths that should have been reported but were not).   Examples of Errors on the Department of Veterans Affairs' (VA) List of 55 On-Campus Veteran Suicides for Fiscal Years 2018 and 2019 (as of September 2019) VA has taken some steps to address on-campus veteran suicides, such as issuing guidance and staff training. However, GAO found that the analyses informing these efforts are limited. Specifically, VHA requires root cause analyses—processes to determine what can be done to prevent recurrences of incidents—for some but not all on-campus veteran suicides. According to VHA officials, only 25 percent of on-campus suicides from October 2017 to April 2019 met the criteria for a root cause analysis. does not make use of all relevant information VA collects about these deaths, such as clinical and demographic data collected through other VA suicide prevention efforts. VHA officials said they could not link the different sources of information, but GAO found that selected medical facilities could do so. Without accurate information on the number of suicides and comprehensive analyses of the underlying causes, VA does not have a full understanding of the prevalence and nature of on-campus suicides, hindering its ability to address them. VA established suicide prevention as its highest clinical priority. In recent years, there have been reports of veterans dying by suicide on VA campuses—in locations such as inpatient settings, parking lots, and on the grounds of cemeteries. GAO was asked to review veteran deaths by suicide on VA campuses. This report examines (1) VA's process to track the number of veterans that died by suicide on VA campuses, and (2) steps VA has taken to address these types of suicides. GAO reviewed the sources of information VHA uses to identify and analyze on-campus veteran suicides, VA and VHA strategic plans and policies related to suicide prevention and reporting, and federal internal control standards. GAO also interviewed VA and VHA central office officials, and officials from three medical facilities that GAO selected because they reportedly had on-campus veteran suicides between fiscal years 2018 and 2019. GAO is making three recommendations, including that VA improve its process to accurately identify all on-campus veteran suicides and conduct more comprehensive analyses of these occurrences. VA did not concur with one of GAO's recommendations related to conducting root cause analyses. GAO continues to believe that this recommendation is valid, as discussed in the report. For more information, contact Debra A. Draper at (202) 512-7114 or draperd@gao.gov.
    [Read More…]
  • Operation Legend: Case of the Day
    In Crime News
    Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Eastern District of Michigan. Operation Legend launched in Detroit on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
    [Read More…]
  • Colorado Man Charged with Hate Crime After Unprovoked Stabbing of Black Man
    In Crime News
    A Colorado man has been charged with a hate crime after stabbing a Black man from Ontario, Oregon while the man was sitting in a fast food restaurant, announced Assistant Attorney General Eric Dreiband of the Justice Department's Civil Rights Division and U.S. Attorney Billy J. Williams of the District of Oregon.
    [Read More…]
  • Arkansas Project Manager Sentenced in Connection with COVID-Relief Fraud
    In Crime News
    A project manager employed by a major retailer was sentenced to 24 months in prison followed by five years of supervised release for fraudulently seeking more than $8 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney R. Trent Shores of the Northern District of Oklahoma.
    [Read More…]
  • Health Care Funding: Federal Obligations to and Funds Received by Certain Organizations Involved in Health-Related Services, 2016 through 2018
    In U.S GAO News
    GAO reviewed federal funding provided to various organizations that offer health-related services, such as voluntary family planning and activities related to the treatment and prevention of HIV/AIDs. In total, the organizations in our review received almost $16 billion through grants or cooperative agreements from the Department of Health and Human Services or U.S. Agency for International Development from 2016 through 2018; nearly all of this funding was received by federally qualified health centers. (See table.) Reported Amounts of Funds Received through Federal Grants or Cooperative Agreements by Organizations in GAO’s Review, 2016-2018 Dollars in millions Federal agency 2016 2017 2018 Total Department of Health and Human Services (HHS)       Federally qualified health centers (FQHC) 4,891.03 5,251.93 5,291.81 15,434.77       Planned Parenthood Federation of America (PPFA) 94.86 106.12 103.51 304.49       International Planned Parenthood Federation (IPPF) 2.30 2.05 1.20 5.55       Marie Stopes International (MSI) 0.00 0.00 0.00 0.00 Total HHS 4,988.19 5,360.10 5,396.52 15,744.81 U.S. Agency for International Development (USAID)       FQHC 0.00 0.00 0.00 0.00       PPFA 0.00 0.00 0.00 0.00       IPPF 2.13 5.48 7.80 15.41       MSI 36.64 34.20 15.62 86.46 Total USAID 38.77 39.68 23.42 101.87 Total (HHS and USAID) 5,026.96 5,399.78 5,419.94 15,846.68 Source: GAO analysis of HHS, PPFA and USAID, data. | GAO-21-188R We provided a draft of this report to the Secretary of Health and Human Services and the USAID Administrator for comment. HHS did not have any comments. USAID provided technical comments, which we incorporated as appropriate. GAO is not making any recommendations. In order to achieve their programmatic goals, federal agencies provide funding to various organizations that, in turn, use those funds to implement programs and activities aligned with those goals. For example, federal agencies may award funding through grants or cooperative agreements for programs. The organizations that are awarded the funding receive and spend the funds over a period of time. GAO was asked to report on federal funding for certain organizations that provide health-related services. This report describes the extent of federal funding through grants and cooperative agreements for federally qualified health centers, Planned Parenthood Federation of America, International Planned Parenthood Federation, and Marie Stopes International from 2016 through 2018. GAO obtained and reviewed information on federal funding from the Department of Health and Human Services and the U.S. Agency for International Development—the primary sources of federal funds to the organizations in our review. GAO also obtained available information from each of the organizations. For more information, contact James Cosgrove at 202-512-7114 or cosgrovej@gao.gov.  
    [Read More…]
  • Briefing With Coordinator for Counterterrorism Ambassador Nathan A. Sales On Terrorist Designations of Al-Shabaab Leaders
    In Crime Control and Security News
    Nathan A. Sales, [Read More…]
  • NASA’s Perseverance Rover Will Look at Mars Through These ‘Eyes’
    In Space
    A pair of zoomable [Read More…]
  • Military Child Care: Off-Base Financial Assistance and Wait Lists for On-Base Care
    In U.S GAO News
    The Department of Defense (DOD) has reviewed the financial assistance it provides for off-base child care services and taken steps to standardize this assistance across the military services. Specifically, in August 2018, representatives of each service agreed to work toward a goal of standardizing the only element of the fee assistance calculation that varies among the services—the maximum provider rate. DOD officials said that they assess progress toward this goal each year, but have not set a definite deadline for full standardization. With respect to assistance for off-base child care at high-cost duty stations, DOD's 2020 report on its child care programs states that the Air Force, Marines, and Navy review high-cost locations annually, and the services may approve increased provider rate caps for specific high-cost locations. In addition, it states that the services may grant waivers allowing increased fee assistance for individual families experiencing hardship. DOD has also assessed factors that contribute to wait lists for on-base child care. According to DOD’s report, DOD found that wait lists are the result of a myriad of factors, including staff shortages and facility conditions that vary across service locations. Officials said DOD has worked for several years to analyze and address wait lists. In 2017, DOD launched a web portal that consolidates child care data across the services and in August 2019, DOD officials began monthly monitoring of wait list data from this portal. These data allowed DOD to identify four geographic regions and six additional locations that account for the majority of wait lists, and focus their efforts on addressing the issues affecting these regions and locations, according to the report. DOD officials said that any requests for additional resources to help address wait lists must be handled through the individual services’ budgeting processes. DOD offers child care in a variety of on- and off-base settings for children of military families. In fiscal year 2020 these child care programs received nearly $1.2 billion in federal funds; in addition, parents pay a portion of the costs. The National Defense Authorization Act for Fiscal Year 2020 required DOD to report on elements of its financial assistance to off-base child care providers and wait lists for on-base child care, and included a provision for GAO to review DOD's report. This report describes DOD's assessment of (1) financial assistance provided to off-base child care providers, and (2) its efforts to reduce wait lists for child care at military bases. GAO reviewed DOD's report on this assessment, interviewed DOD officials, and reviewed relevant federal law. For more information, contact Kathryn A. Larin at (202) 512-7215 or larink@gao.gov.
    [Read More…]
  • Attorney General William P. Barr Announces Updates on Operation Legend at Roundtable in Albuquerque, New Mexico
    In Crime News
    At a roundtable with law [Read More…]
  • Trinidad and Tobago Travel Advisory
    In Travel
    Reconsider travel [Read More…]
  • Medicaid Long-Term Services and Supports: Access and Quality Problems in Managed Care Demand Improved Oversight
    In U.S GAO News
    At the state and federal levels, GAO found weaknesses in the oversight of Medicaid managed long-term services and supports (MLTSS), which assist individuals with basic needs like bathing or eating. Through various monitoring approaches, six selected states identified significant problems in their MLTSS programs with managed care organization (MCO) performance of care management, which includes assessing beneficiary needs, authorizing services, and monitoring service provision to ensure quality and access to care. State efforts may not be identifying all care management problems due to limitations in the information they use to monitor MCOs, allowing some performance problems to continue over multiple years. Performance Problems in Managed Care Organization (MCO) Care Management, Identified by Selected States GAO found that the Centers for Medicare & Medicaid Services' (CMS) oversight of state implementation of its 2016 requirements, and of access and quality in MLTSS more broadly, was limited. This hinders the agency's ability to hold states and MCOs accountable for quality and access problems beneficiaries may face. Oversight did not detect quality and access problems. GAO identified cases where CMS learned about problems not through its regular oversight, but instead from beneficiary complaints, media reports, or GAO. CMS officials said that states had not reported these problems to the agency. Lack of national oversight strategy and assessment of problems in MLTSS. Weaknesses in oversight reflect a broader area of concern—namely, that CMS lacks a strategy for oversight. CMS also has not assessed the nature and extent of access and quality problems across states. Without a strategy and more robust information, CMS risks being unable to identify and help address problems facing beneficiaries. As of July 2020, CMS had convened a new workgroup focused on MLTSS oversight, though the goals and time frames for its work were unclear. An increasing number of states are using managed care to deliver long-term services and supports in their Medicaid programs, thus delegating decisions around the amounts and types of care beneficiaries receive to MCOs. Federal guidance requires that MLTSS programs include monitoring procedures to ensure the appropriateness of those decisions for this complex population, which includes adults and children who may have physical, cognitive, and mental disabilities. GAO was asked to review care management in MLTSS programs. Among other things, this report examines state monitoring of care management, and CMS oversight of state implementation of 2016 requirements related to MLTSS quality and access. GAO examined documentation of monitoring procedures and problems identified in six states selected for variation in program age and location. GAO reviewed federal regulations and oversight documents, interviewed state and federal Medicaid officials, and assessed CMS's policies and procedures against federal internal control standards. GAO is making two recommendations to CMS to (1) develop a national strategy for overseeing MLTSS, and (2) assess the nature and prevalence of MLTSS quality and access problems across states. CMS did not concur with the recommendations. GAO maintains the recommendations are warranted, as discussed in this report. For more information, contact at (202) 512-7114 or yocomc@gao.gov.
    [Read More…]
  • Remarks by Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs, at the Pennsylvania Roundtable on Mental Health and Addiction
    In Crime News
    Thank you. It’s [Read More…]
  • NASA’s Cold Atom Lab Takes One Giant Leap for Quantum Science
    In Space
    A new study describes [Read More…]
  • Commemoration of the Massacre of Mahshahr and Designation of Iranian Officials Due to Involvement in Gross Violations of Human Rights
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • The United States Condemns the Kidnapping of Students in Kankara, Nigeria
    In Crime Control and Security News
    Cale Brown, Principal [Read More…]
  • How Common Sense and Hard Work Saved Taxpayers
    In Human Health, Resources and Services
    Imagine you manage a [Read More…]
  • Justice Department Settles Citizenship-Status Discrimination Against South Carolina Security Guard Firm Involving Former Interpreter for the U.S. Military in Iraq
    In Crime News
    The Justice Department announced today that it reached a settlement with Security Management of South Carolina LLC (Security Management), a private security company that provides armed and unarmed security services throughout South Carolina and Georgia.
    [Read More…]
  • Joint Statement between the United States and Uzbekistan on the Successful Conclusion of 2020 Annual Bilateral Consultations and Commencement of a Strategic Partnership Dialogue
    In Crime Control and Security News
    Office of the [Read More…]
  • Michigan Restaurant and Strip Club Owner Sentenced to Two Years n Prison for Tax Crimes
    In Crime News
    A Walled Lake, Michigan, business owner was sentenced today to two years in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
    [Read More…]
  • The International Visitor Leadership Program: Celebrating 80 Years
    In Crime Control and Security News
    Office of the [Read More…]
  • Principal Deputy Assistant Attorney General Katharine T. Sullivan and Office for Victims of Crime Director Jessica E. Hart Recognize Domestic Violence Month at a Law Enforcement and Domestic Violence Roundtable
    In Crime News
    Yesterday, Office of [Read More…]
  • Justice Department Reaches Settlement with San Antonio Housing Providers for Charging Unlawful Lease Termination Fees to Servicemembers
    In Crime News
    The Justice Department today announced that it has reached an agreement with the former owners of two apartment complexes in San Antonio, Texas, to resolve allegations that they violated the Servicemembers Civil Relief Act (SCRA) by imposing unlawful lease termination charges on 41 servicemembers and by refusing to allow four other servicemembers to terminate their leases early.
    [Read More…]
  • NASA Observes Earth Day With Downloadable Art
    In Space
    To honor the day’s [Read More…]
  • El Salvador Travel Advisory
    In Travel
    Reconsider travel to El [Read More…]
  • Justice Department Issues Business Review Letter for Proposed University Technology Licensing Program
    In Crime News
    The Justice  Department’s Antitrust Division announced today that it has completed its review of a proposed joint patent licensing pool known as the University Technology Licensing Program (UTLP).  UTLP is a proposal by participating universities to offer licenses to their physical science patents relating to specified emerging technologies.
    [Read More…]
  • North Carolina Return Preparers Plead Guilty to Conspiring to Defraud the IRS
    In Crime News
    Two Durham, North Carolina, return preparers pleaded guilty to conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.
    [Read More…]
  • Indian Health Service: Actions Needed to Improve Oversight of Federal Facilities’ Decision-Making About the Use of Funds
    In U.S GAO News
    The Indian Health Service's (IHS) oversight of federally operated health care facilities' decision-making process about the use of funds has been limited and inconsistent. Funds include those from appropriations, as well as payments from federal programs, such as Medicaid and from private insurance, for care provided by IHS to American Indians and Alaska Natives (AI/AN). While some oversight functions are performed at IHS headquarters, the agency has delegated primary responsibility for the oversight of health care facilities' decision-making about the use of funds to its area offices. Area office officials said the oversight they provide has generally included (1) reviewing facilities' scope of services, and (2) reviewing facilities' proposed expenditures. However, GAO's review found that this oversight was limited and inconsistent across IHS area offices, in part, due to a lack of consistent agency-wide processes. While IHS officials from all nine area offices GAO interviewed said they reviewed facilities' scope of services and coordinated with tribes when doing so, none reported systematically reviewing the extent to which their facilities' services were meeting local health needs, such as by incorporating the results of community health assessments. Such assessments can involve the collection and assessment of data, as well as the input of local community members and leaders to identify and prioritize community needs. These assessments can be used by facilities to assess their resources and identify priorities for facility investment. While IHS has identified such assessments as a priority, the agency does not require federally operated facilities to conduct such assessments or require the area offices to use them as they review facilities' scope of services. To ensure that facilities are effectively managing their resources, IHS has a process to guide its review of facilities' proposed construction projects that cost at least $25,000. However, IHS does not have a similar process to guide its oversight of other key proposed expenditures, such as those involving the purchase of major medical equipment, the hiring of providers, or the expansion of services. Specifically, GAO found limitations and inconsistencies with respect to requiring a documented justification for proposed expenditures; documenting the review and approval of decisions; and conducting an impact assessment on patient access, cost, and quality of care. The limitations and inconsistencies that GAO found in IHS's oversight are driven by the lack of consistent oversight processes across the area offices. Without establishing a systematic oversight process to compare federally operated facilities' current services to population needs, and to guide the review of facilities' proposed expenditures, IHS cannot ensure that its facilities are identifying and investing in projects to meet the greatest community needs, and therefore that federal resources are being maximized to best serve the AI/AN population. IHS, an agency of the Department of Health and Human Services, provides care to AI/AN populations through a system of federally operated and tribally operated health care facilities. AI/AN have experienced long standing problems accessing needed health care services. GAO has previously reported that IHS has not been able to pay for all eligible health care services; however, the resources available to federally operated facilities have recently grown. This report assesses IHS oversight of federal health care facilities' decision-making about the use of funds. GAO reviewed IHS policies and documents; and interviewed IHS officials from headquarters, nine area offices, and three federally operated facilities (two hospitals and one health clinic). GAO recommends that IHS develop processes to guide area offices in (1) systematically assessing how federally operated facilities will effectively meet the needs of their patient populations, and (2) reviewing federal facilities' spending proposals. HHS concurred with these recommendations. For more information, contact Jessica Farb at (202) 512-7114 or farbj@gao.gov.
    [Read More…]
  • NASA’s Mars Perseverance Rover Passes Flight Readiness Review
    In Space
    The agency’s Mars [Read More…]
  • The Justice Department Announces Statement of Interest Filed in Lawsuit Challenging Philadelphia’s Moratorium that Cancelled the Veterans Day Parade
    In Crime News
    The Justice Department announced that a Statement of Interest (SOI) was filed today in a case pending in the Eastern District of Pennsylvania that challenges the City of Philadelphia’s “Event Moratorium” that prohibits issuing permits for gatherings of 150 or more people on public property.
    [Read More…]
  • The Detective Aboard NASA’s Perseverance Rover
    In Space
    An instrument called [Read More…]
  • Private Health Coverage: Results of Covert Testing for Selected Offerings
    In U.S GAO News
    GAO performed 31 covert tests to selected sales representatives and stated that we had pre-existing conditions, such as diabetes or heart disease, and we requested coverage for these conditions to see if the sales representative directed GAO's undercover agents to a comprehensive Patient Protection and Affordable Care Act (PPACA)-compliant plan, or a PPACA-exempt plan that does not cover what we requested. As part of these tests, GAO gauged whether sales representatives engaged in potentially deceptive practices, such as making false or misleading statements about coverage or omitting material information about coverage. The results of the covert tests ranged from sales representatives appropriately explaining to GAO's undercover agents that a PPACA-exempt plan would not cover the pre-existing condition the undercover agents stated that they had, to engaging in potentially deceptive marketing practices that misrepresented or omitted information about the products they were selling. Specifically, in 21 of 31 covert tests, the sales representative appropriately referred undercover agents to a PPACA-compliant plan. In two of 31 covert tests, the sales representatives did not appear to engage in deceptive marketing practices but were not always consistent or clear in their explanation of the type of coverage and plans they were selling. In the remaining eight of 31 covert tests, the sales representatives engaged in potentially deceptive marketing practices, such as claiming the pre-existing condition was covered when the health plan documents GAO received after purchase said otherwise. GAO plans to refer these eight cases of potential deceptive marketing practices to the Federal Trade Commission (FTC) and corresponding state insurance commissioners' offices for follow-up as appropriate. Millions of Americans obtain health insurance coverage in the individual market, which consists mainly of private plans sold directly to consumers without access to group coverage. While generally regulated by states, starting in 2014, PPACA established a number of new federal requirements for the individual health insurance market. For example, PPACA prohibited insurers from excluding coverage or charging higher premiums for pre-existing conditions and required that individual market plans cover a set of essential health benefits, including coverage for mental health and substance abuse disorder services, prescription drugs, and maternity and newborn care. Certain types of health coverage arrangements that can be sold directly to consumers do not have to comply with some or all of PPACA's individual market requirements and, as a result, may be less expensive, but also offer more limited benefits compared to PPACA-compliant plans. Recent changes to federal law and regulations could result in the increased use of PPACA-exempt health coverage arrangements as alternatives to PPACA-compliant plans in the individual market. For example, in 2018, federal regulations expanded the availability of short term, limited duration insurance (STLDI) plans, a type of PPACA-exempt arrangement. In addition, starting January 1, 2019, individuals who fail to maintain "minimum essential coverage," as required by PPACA, no longer face a tax penalty. Further, the devastating economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic could create additional demand for affordable health coverage, including PPACA-exempt plans.  With these changes, and because of their lower relative costs, PPACA-exempt health coverage arrangements may be attractive to consumers, particularly those who find it difficult to afford PPACA-compliant plans. However, such arrangements generally do not need to follow PPACA's requirement that plans in the individual market be presented to consumers in defined categories outlining the extent to which they are expected to cover medical care. As a result, depending on how they are marketed and sold, PPACA-exempt arrangements could present risks for consumers, if, for example, they buy them mistakenly believing that coverage is as comprehensive as for PPACA-compliant plans. GAO was asked to obtain insights on the marketing and sales practices of insurance sales representatives who sell PPACA-exempt plans. In this report, GAO describes the results of covert tests we conducted involving selected sales representatives, when contacted by individuals stating that they had pre-existing conditions. In this regard, GAO agents performed a number of covert tests (i.e., undercover phone calls) from November 2019 through January 2020 posing as individuals needing to purchase health insurance to cover pre-existing conditions. GAO also discussed the marketing and oversight of PPACA-exempt arrangements with senior officials from federal agencies, including the FTC, and Centers of Medicare and Medicaid Services (CMS) within the Department of Health and Human Services (HHS), as well as the National Association of Insurance Commissioners (NAIC)5. GAO provided a draft of this product to FTC, HHS, and NAIC for review and comment. FTC, HHS, and NAIC provided technical comments, which GAO incorporated as appropriate. HHS provided additional written comments on a draft of this report. For more information, contact Seto Bagdoyan at (202)-6722 or bagdoyans@gao.gov.
    [Read More…]
  • United States Files False Claims Act Complaint Against Drug Maker Teva Pharmaceuticals Alleging Illegal Kickbacks
    In Crime News
    The United States has filed a False Claims Act complaint against Teva Pharmaceuticals USA Inc. and Teva Neuroscience Inc. (Teva), alleging that they illegally paid the Medicare co-pays for their multiple sclerosis (MS) product, Copaxone, through purportedly independent foundations that the companies used as conduits in violation of the Anti-Kickback Statute, the Department of Justice announced today. 
    [Read More…]
  • U.S. Reinforces Commitment to Secure, Stable, Democratic, and Self-Reliant Afghanistan at 2020 Conference
    In Crime Control and Security News
    Office of the [Read More…]
  • U.S. Department of State to Honor Foreign Service Officer (ret.) William S. Rowland as Hero of U.S. Diplomacy
    In Crime Control and Security News
    Office of the [Read More…]