Office of Public Affairs Defense Contractor MORSECORP Inc Agrees to Pay 46 Million to Settle Cybersecurity Fraud Allegations United States Department of Justice
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ppArchived NewsppMORSECORP Inc MORSE of Cambridge Massachusetts has agreed to pay 46 million to resolve allegations that MORSE violated the False Claims Act by failing to comply with cybersecurity requirements in its contracts with the Departments of the Army and Air Force ppThe settlement resolves allegations that MORSE submitted false or fraudulent claims for payment on contracts with the Departments of the Army and Air Force and that those claims were false or fraudulent because Morse knew it had not complied with those contracts cybersecurity requirements As part of the settlement MORSE admitted acknowledged and accepted responsibility for the following factsppFederal contractors must fulfill their obligations to protect sensitive government information from cyber threats said US Attorney Leah B Foley for the District of Massachusetts We will continue to hold contractors to their commitments to follow cybersecurity standards to ensure that federal agencies and taxpayers get what they paid for and make sure that contractors who follow the rules are not at a competitive disadvantage ppWe are pleased with todays settlement which further demonstrates the resolve of the Department of the Army Criminal Investigation Division and our law enforcement partners to protect and defend the assets of the United States Army and Department of Defense said Special Agent in Charge Keith K Kelly of the Department of the Army Criminal Investigation Division Fraud Field Office Were committed to protecting the warfighter and maintaining the Armys operational readiness while holding those who engage in such acts accountableppFailure to implement cybersecurity requirements can have devastating consequences leaving sensitive DoD data vulnerable to cyber threats and malicious actors said Special Agent in Charge William W Richards of the Air Force Office of Special Investigations AFOSI AFOSI alongside our investigative partners and the Department of Justice will continue to combat fraud affecting the Department of the Air Force and hold those accountable that fail to properly safeguard sensitive defense informationppProtecting the integrity of Department of Defense DoD procurement activities is a top priority for the DoD Office of Inspector Generals Defense Criminal Investigative Service DCIS said Special Agent in Charge Patrick J Hegarty of the DCIS Northeast Field Office Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk We will continue to work with our law enforcement partners and the Department of Justice to investigate allegations of false claims on DoD contractsppThe settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery The settlement in this case provides for the whistleblower to receive an 851000 share of the settlement amount The qui tam case is captioned United States ex rel Berich v MORSECORP Inc et al No 23cv10130 D Mass ppThe settlement announced today was the result of a coordinated effort between the US Attorneys Office for the District of Massachusetts the Civil Divisions Commercial Litigation Branch Fraud Section with assistance from the Department of the Army Criminal Investigation Divisions Fraud Field Office the Air Force Office of Special Investigations DCIS and the General Services Administration Office of Inspector General The matter was handled by Brian LaMacchia Chief of the Affirmative Civil Enforcement Unit Assistant US Attorney Julien Mundele in the US Attorneys Office and DOJ Senior Trial Counsel Christopher Terranova ppDRI Relays Inc DRI a subsidiary of TE Connectivity Corporation TEC has agreed to pay 157 million to resolve allegations that it violated the False Claims Act by supplying militaryppSeoul Medical Group Inc and its subsidiary Advanced Medical Management Inc headquartered in California have agreed to pay 58740000 and their former president and majority owner Dr Min Young ChappEvolutions Flooring Inc Evolutions a South San Francisco Californiabased importer of multilayered wood flooring and its owners Mengya Lin and Jin Qian have agreed to resolve allegations that they violatedppOffice of Public AffairsUS Department of Justice950 Pennsylvania Avenue NWWashington DC 20530ppOffice of Public Affairs Direct Line2025142007ppDepartment of Justice Main Switchboard2025142000ppSignup for Email UpdatesSocial MediappppHave a question about Government Servicesp
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ppArchived NewsppMORSECORP Inc MORSE of Cambridge Massachusetts has agreed to pay 46 million to resolve allegations that MORSE violated the False Claims Act by failing to comply with cybersecurity requirements in its contracts with the Departments of the Army and Air Force ppThe settlement resolves allegations that MORSE submitted false or fraudulent claims for payment on contracts with the Departments of the Army and Air Force and that those claims were false or fraudulent because Morse knew it had not complied with those contracts cybersecurity requirements As part of the settlement MORSE admitted acknowledged and accepted responsibility for the following factsppFederal contractors must fulfill their obligations to protect sensitive government information from cyber threats said US Attorney Leah B Foley for the District of Massachusetts We will continue to hold contractors to their commitments to follow cybersecurity standards to ensure that federal agencies and taxpayers get what they paid for and make sure that contractors who follow the rules are not at a competitive disadvantage ppWe are pleased with todays settlement which further demonstrates the resolve of the Department of the Army Criminal Investigation Division and our law enforcement partners to protect and defend the assets of the United States Army and Department of Defense said Special Agent in Charge Keith K Kelly of the Department of the Army Criminal Investigation Division Fraud Field Office Were committed to protecting the warfighter and maintaining the Armys operational readiness while holding those who engage in such acts accountableppFailure to implement cybersecurity requirements can have devastating consequences leaving sensitive DoD data vulnerable to cyber threats and malicious actors said Special Agent in Charge William W Richards of the Air Force Office of Special Investigations AFOSI AFOSI alongside our investigative partners and the Department of Justice will continue to combat fraud affecting the Department of the Air Force and hold those accountable that fail to properly safeguard sensitive defense informationppProtecting the integrity of Department of Defense DoD procurement activities is a top priority for the DoD Office of Inspector Generals Defense Criminal Investigative Service DCIS said Special Agent in Charge Patrick J Hegarty of the DCIS Northeast Field Office Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk We will continue to work with our law enforcement partners and the Department of Justice to investigate allegations of false claims on DoD contractsppThe settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery The settlement in this case provides for the whistleblower to receive an 851000 share of the settlement amount The qui tam case is captioned United States ex rel Berich v MORSECORP Inc et al No 23cv10130 D Mass ppThe settlement announced today was the result of a coordinated effort between the US Attorneys Office for the District of Massachusetts the Civil Divisions Commercial Litigation Branch Fraud Section with assistance from the Department of the Army Criminal Investigation Divisions Fraud Field Office the Air Force Office of Special Investigations DCIS and the General Services Administration Office of Inspector General The matter was handled by Brian LaMacchia Chief of the Affirmative Civil Enforcement Unit Assistant US Attorney Julien Mundele in the US Attorneys Office and DOJ Senior Trial Counsel Christopher Terranova ppDRI Relays Inc DRI a subsidiary of TE Connectivity Corporation TEC has agreed to pay 157 million to resolve allegations that it violated the False Claims Act by supplying militaryppSeoul Medical Group Inc and its subsidiary Advanced Medical Management Inc headquartered in California have agreed to pay 58740000 and their former president and majority owner Dr Min Young ChappEvolutions Flooring Inc Evolutions a South San Francisco Californiabased importer of multilayered wood flooring and its owners Mengya Lin and Jin Qian have agreed to resolve allegations that they violatedppOffice of Public AffairsUS Department of Justice950 Pennsylvania Avenue NWWashington DC 20530ppOffice of Public Affairs Direct Line2025142007ppDepartment of Justice Main Switchboard2025142000ppSignup for Email UpdatesSocial MediappppHave a question about Government Servicesp
