Fed Jury Finds Defense Contractor IIF Data Solutions Innocent of Whistleblower Charges That It Defrauded USA

Wed Oct 28, 2009 5:47pm EDT
 
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Fed Jury Finds Defense Contractor IIF Data Solutions Innocent of Whistleblower
Charges That It Defrauded USA



WASHINGTON, Oct. 28 /PRNewswire-USNewswire/ -- In the culmination of a
three-year civil case brought under the False Claims Act, a federal jury in
the United States District Court for the Eastern District of Virginia, in
Alexandria, VA, yesterday unanimously found that IIF Data Solutions and
Charles Patten, Sr., its founder and president, did not defraud the United
States Government in contracts with the Army National Guard. The plaintiff
sought $140 million in damages, which would have been trebled under the False
Claims Act.

"This is the first time in my career both in the National Guard and as a
private contractor I have ever been accused of any unethical conduct.  As I
have often said in the last three years, no one who does what the plaintiff
accused me and IIF of doing should ever be allowed to contract with the
Government.  We did not do anything wrong, and I am happy and relieved that
the jury agreed," said Mr. Patten, a retired Major with 27 years of service in
the Army National Guard. "The cloud this case put over all the good people at
IIF who proudly provide the highest quality services to our Government
customers was unfair.  Like many companies that are falsely accused of
wrongdoing, we were tempted to settle to end this nightmare.  However, we came
to the conclusion that it was better to stand and defend ourselves in court,
rather than cave in to such baseless allegations.  My heartfelt thanks to our
new trial team, for their confidence in our integrity, their lack of fear in
taking this case to a jury, and the skill with which they represented us."

"The False Claims Act serves an important purpose of helping to combat fraud
against the Government.  But a False Claims Act case when brought against an
innocent contractor like IIF and Charlie Patten can be a huge club to force
even the most honest contractor into a settlement to pay off a plaintiff who
really has no case," explained Robert Cynkar, Esq. of Cuneo Gilbert and
LaDuca, LLP in Washington, D.C., one of IIF's attorneys. "Sometimes, as in
this case, a company needs to go to trial to vindicate its good name."

"All too-often government contractors are counseled to settle such cases
rather than risk fighting them before a jury," added Christopher Kachouroff,
Esq. of Dominion Law Group, P.C. in Virginia, another IIF attorney.  "GSA
Schedule contracts, where being on the Schedule just allows a company to bid
on the real contracts with other agencies, have been a fertile ground for
unscrupulous plaintiffs to concoct meritless fraud cases.  As was true here, a
plaintiff will try to claim fraud based on a dispute over the terms of the
Schedule contract, when that contract doesn't get the contractor any money. 
The real customer, the National Guard, has consistently given IIF high marks
in all the work it has done and continues to do for the Guard.  You know a
fraud case is frivolous when the supposed victim of the fraud not only does
not cancel any of the company's contracts, but continues to seek their
services.  When honest contractors win, the United States wins."  

IIF's trial team included Mr. Kachouroff, Mr. Cynkar, James Duane, of counsel
to Dominion Law Group, P.C., and Jason Workmaster of McKenna Long and
Aldridge.

IIF Data Solutions Inc. provides consulting, program development, training
delivery and development, information technology, business management, program
management, and manpower support services to the National Guard, U.S. Army and
Department of Defense, among other clients.  It is a privately held
corporation based in Centreville, VA.


SOURCE  IIF Data Solutions Inc.

Robert Cynkar, Esq, +1-202-789-3960, or Christopher Kachouroff, Esq.,
+1-703-853-0610, both for IIF Data Solutions Inc.

 

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