The Department of Justice recently unsealed a $61 million dollar settlement with Ohio-based companies RPM International Inc. and Tremco, Inc.  The settlement is the result of a whistleblower lawsuit alleging that RPM and Tremco submitted false claims to the United States between 2002 and 2011.  An Ohio resident, Gregory Rudolph, filed his whistleblower lawsuit in 2010 alleging that Tremco, a subsidiary of RPM, illegally overcharged government  such as the Army, Air Force, and VA Hospitals for roofing products and services.

Specifically Rudolph, a former vice president of Tremco, alleged that Tremco and RPM filed false claims in connection with two multiple award schedule (MAS) contracts with the General Services Administration (GSA).  The lawsuit also alleged that Tremco marketed expensive materials to government purchasers without disclosing the availability of the same materials at lower prices that were manufactured and sold by the company.

From January 2002 to March 2011, Tremco was alleged to have knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers, and to pass those discounts on to government customers.  Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division, stated:

Companies that knowingly skirt the rules for securing government business undermine the integrity of the procurement process and create an unfair advantage against companies that are playing by the rules. We are committed to ensuring a level playing field and protecting taxpayer dollars.

Rudolph’s lawsuit was filed under the Federal False Claims Act.  Under the whistleblower provisions of the False Claims Act, private citizens can bring lawsuits on behalf of the government and share in any recovery.  For his help in exposing the fraud, Rudolph will receive 17.9 percent of the $61 million recovered by the government; an amount totaling more than $10.9 million. If you are aware of government fraud, abuse or waste and are interested in pursuing a whistleblower lawsuit, contact Michelle Fulmer, Section Administrator of our firm’s Consumer Fraud Section, and she will direct you to one of our lawyers who is handling whistleblower cases. Michelle can be reached at 800-898-2034 or by email at Michelle.Fulmer@beasleyallen.com.

Source: PRN Newsire

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