Contract Fraud with Your Money
Tim Ferner blew the whistle on a contract-steering scam involving a middleman in Florida and an engineering company hired to develop anti-terrorism techniques.
Tim Ferner suspected the scam in 2007 when his superiors at the Coalition and Irregular Warfare Center downplayed his concerns about how contracts were being doled out. Science Applications International Corporation (SAIC), received those contracts.
Ferner tried to go through military channels to stop the fraud he witnessed, Instead of helping, his superiors made his life difficult, even threatening to deploy him to Afghanistan while he was undergoing cancer treatment. Ultimately, he was fired from his job as Chief of Staff for the Coalition and Irregular Warfare Center at Nellis Air Force Base and relegated to a menial position. With channels closed off and retaliation underway, the case went to court.
SAIC and the government reached a settlement. The Department of Justice went to pains to note the settlement contained “allegations only and there has been no determination of liability.” However, SAIC agreed to pay the government $5.75 million to resolve allegations it circumvented the bidding process to obtain lucrative contracts.
Ferner’s lawyers claimed the alleged scam was facilitated by a civilian middleman who “claimed to be a high-ranking government official who had authority to bypass the bidding process, none of which was true.” Ferner himself “was alarmed that his military supervisors condoned and wanted to cover up the violation.”
And hey, small world: SAIC around the same time also paid the government $11.75 million to settle allegations it charged inflated prices for another, unrealted, contract.
EXCLUSIVE: Ferner Recounts His Whistleblowing
Ferner received a nice financial award under the False Claims Act, and left the U.S. for New Zealand. In an exclusive, he speaks out on his own experience as a whistleblower, with some hard words for America about how its government works:
Exactly one year after my whistle-blowing case became public, I’m looking back and wondering: “What the hell was I thinking?” Like many whistleblowers, my allegations were validated; I was vindicated but nobody was ever held accountable. So actually, what was accomplished?
My case pales in comparison to others working in the government who have come across really bad people doing horrendous things. All across America there are thousands of regular people, brave men and women who happen upon malfeasance. These people had the courage and conviction to do the right thing and report it. Why? Like myself, these people did the right thing because honor and integrity are the core essence of who they are. Unfortunately, honesty, integrity and dedication to professionalism are dying traits across America and individuals who demonstrate these qualities are punished, especially those who work within the government sector.
I’ve always felt that as a member of the United States military it was an honor and privilege to serve a great nation. And that, in addition to my legal obligations, I had a moral obligation to ensure that the monies the American people paid were spent in the most effective and efficient manner. I always treated government monies the same as my own personal money and spent it judiciously. Unfortunately, other military members and government employees don’t hold the same view. Consequently, millions and millions of taxpayers’ dollars are wasted needlessly. Like thousands of other whistle-blowers working for the government, I found out what happens when you have the audacity to call them out on fraud, waste and abuse and try and hold people accountable.
The terrorist attacks that occurred on 9/11 changed our country in many ways. People don’t recognize that it’s changed the way the government provides safety and security to the people. The government embraced contractors to provide security in keeping America safe. We seem to be safer but at what cost? This decision has transformed the governmental contracting process into something akin to a gigantic hog’s trough. The government pours an endless supply of money into the trough and the contractors continue to “belly up” and feed totally unchecked. The government provides little oversight over monies spent and a fearful public doesn’t care so long as they think they are safe.
Consequently, unscrupulous individuals continue to line their pockets at our expense. Even when they are caught, the government does nothing and seemingly doesn’t care. Contractors pay huge fines under the auspices of “avoiding the costs of protracted litigation” while the individuals involved plead to lesser charges in exchange for working with prosecutors. The fraud, waste and abuse is so prevalent that this ridiculous cycle is the only way to keep it in check. The “Justice System” is devoid of any justice or accountability; it’s solely a process designed to make it look like something is being done.
I uncovered in excess of $42 million in fraud. Despite this, nobody has been prosecuted or held accountable. Like so many other contractors, a multimillion dollar settlement was paid to the government to “costly, protracted litigation.” The individual operating as the “middleman” was ultimately found to be liable for $42 million. Despite this, he negotiated this down and paid a fine of $105,000 in exchange for providing assistance to the government in “ongoing investigations.” Amazingly, all these people still have security clearances and still work as a contractors for the government. What message does this send about the government’s commitment to honesty and integrity in the contracting community?
The Air Force officers responsible for overseeing the programs involved in the fraud all walked away with no repercussions to their careers. The taxpayers paid a lot of money to some very senior officers to not be held accountable. A sad commentary that in today’s Air Force, the moral fibre of the command environment is so fetid that it views fraud as a normal cost of doing business. Nice to know the senior leaders who are deciding the fate of your sons and daughters get that privilege given their lack of morality. How can we expect them to make an appropriate decision on the sanctity of life when they lack the morality to decide simple things like what’s right and wrong concerning contract fraud? Aren’t the military supposed to be above the pettiness of politics? Or has the military just become another breeding ground for the dysfunctional politicians that now stymie our political system? Given the fiscal state of the country people should be outraged!
Like so many other whistle-blowers; I know in my heart I did the right thing in reporting the fraud. And again, like so many other whistle-blowers I was the only one who paid a price throughout the ordeal. Ostracised, targeted and ultimately punished because I had the audacity to believe we the people deserve better. When are we going to start holding people accountable? Like other whistleblowers; I’ve done my part. Everybody needs to do their part. It’s hard for others to look at maleficence in government and report it when they see how whistleblowers are treated but more needs to be done.
I hope you never find yourself in the unenviable position of being a whistleblower; and I mean that. Yeah, I got a nice settlement for my troubles as a whistleblower but that’s not why I did it. I did it because it was the right thing to do. Knowing what I know now, I’m still looking back thinking; “What the hell was I thinking?”