DETROIT — This is an official press release from the U.S. Department of Justice (USAO - Michigan, Eastern), published as received.
DETROIT - United States Attorney Jerome F. Gorgon Jr. announced today that Lifeview Group, Inc., together with its corporate predecessors and affiliates (Lifeview), agreed to a settlement of $5,059,808.00 to resolve allegations that they violated the False Claims Act.
Gorgon was joined in the announcement by AbilityOne Commission Chairperson Christina Brandt, Acting Inspector General Carla Smith and Investigative Attorney Lina Younes of the U.S. AbilityOne Office of the Inspector General, Special Agent in Charge Jorge Richardson of the U.S. General Services Office of Inspector General Midwest Investigations Division and Acting Special Agent in Charge Jessica Herrington of the Department of Defense Office of Inspector General (DoD OIG), Defense Criminal Investigative Service (DCIS), Northeast Field Office
Lifeview was involved in the Department of War’s Defense Manpower Data Center Enterprise Information Technology Services contract (EITS). The contract was awarded through the AbilityOne Program, a federal program enacted to create employment opportunities for blind or significantly disabled individuals. The program is administered by the Committee for Purchase From People Who Are Blind or Severely Disabled, operating as the U.S. AbilityOne Commission. To participate in the AbilityOne Program, contractors must perform 75% of the labor related to “the[ir overall] production of products and… provision of services” with labor by individuals who are the blind or significantly disabled. This is known as the direct labor hour ratio requirement. Contractors must also meet contract-specific direct labor hour ratios, and the AbilityOne Commission can approve lower direct labor hour ratios on a project-by-project basis. The United States investigated allegations that Lifeview did not meet the direct labor hour ratio requirement for the EITS contract, and this settlement resolves allegations that Lifeview made false statements to the AbilityOne Commission about Lifeview’s performance of the EITS contract in the period leading up to the renewal of the EITS contract on June 17, 2019.
“The False Claims Act is an important tool for combatting procurement fraud. Our office will vigorously investigate entities that make false statements about their qualifications to obtain or keep government contracts,” said U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan.
“The AbilityOne Commission maintains a zero-tolerance policy toward any action, omission, or misrepresentation that undermines the integrity of the AbilityOne Program,” said Commission Chairperson Christina Brandt. “The Commission will promptly and thoroughly address allegations of wrongdoing to ensure that isolated incidents are appropriately resolved. Working with the Department of Justice and our partners, the Commission and its Office of Inspector General remain committed to accountability, transparency, and responsible stewardship of taxpayer dollars.”
“False or misleading statements about work related to a program intended to expand employment opportunities for individuals with disabilities should not be tolerated,” said Special Agent in Charge Jorge Richardson of the U.S. General Services Office of Inspector General Midwest Investigations Division. "We will continue working with federal partners to uncover misconduct, protect public resources, and hold accountable those who secure government contracts by providing false information."
“The AbilityOne program is designed to expand meaningful employment opportunities for blind and disabled workers, and they depend on the honesty and accountability of participating contractors,” said Acting Special Agent in Charge Jessica Herrington of the Department of Defense Office of Inspector General (DoD OIG), Defense Criminal Investigative Service (DCIS), Northeast Field Office. “As the law enforcement arm of the DoD OIG, DCIS remains committed to ensuring that contractors fulfill their obligations and provide accurate information to federal oversight bodies. This settlement underscores our dedication to protecting taxpayer funds and the importance of programs that broaden access to employment.”
The settlement resolves a civil lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery. The lawsuit was filed in the Eastern District of Michigan and is captioned United States ex rel. Hruska v. Global Connections to Employment, Inc., Case No. 17-13804 (E.D. Mich.).
The resolution obtained in this matter was the result of a coordinated effort among the United States Attorney’s Office for the Eastern District of Michigan, the U.S. AbilityOne Commission, the U.S. AbilityOne - Office of Inspector General, the U.S. Department of War - Office of the Inspector General, and the U.S. General Services Administration - Office of the Inspector General. The matter was handled by Assistant United States Attorney John Postulka from the U.S. Attorney’s Office for the Eastern District of Michigan.
The investigation and resolution of this matter illustrates the government’s emphasis on combating fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the FraudNet hotline at 1-800-424-5454.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
