Taxpayers
Against Fraud
Names Alan Grayson
Lawyer of the Year for 2006
Taxpayers
Against Fraud, an organization devoted to combating fraud
against the Federal Government, has named Orlando, Florida
lawyer Alan Grayson Lawyer of the Year for 2006 for his work
in the Custer Battles case which sought to recover money
stolen from the American people through fraudulent billing
in Iraq.
Said TAF President James Moorman, "Alan's discovery work,
coupled with his masterful courtroom presentation of the
facts, resulted in a jury awarding maximum damages on every
single claim. Because it focused public attention on Iraq
war profiteers, Alan's win in this case was a great service
to the nation, as well as a credit to the False Claims Act
bar."
_ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _
Background
In August of 2004, two former managers of security firm
Custer Battles filed a False Claims Act lawsuit, under seal,
charging the company with inflating prices under a series of
military and defense contracts awarded in Iraq.
In October of 2004, the Government declined to intervene in
the case. Though the Justice Department declined to say why
it did not join the case, citing department policy, some
analysts speculate that it was a political decision, as the
case was declined before a serious investigation of the
charges could even begin to take place.
Alan Grayson, the lawyer for the two whistleblowers
reporting the fraud, successfully pursued the case through a
motion to dismiss and a lengthy discovery process.
The initial legal challenge was daunting, with both the
defendant and the judge questioning whether fraud against
the Coalition Provisional Authority in Iraq was actionable
under the False Claims Act.
Alan Grayson vigorously argued that it was, pointing out
that the contract was decided by U.S. military personnel,
that the contract was awarded to a U.S.-based company, that
the contract was a standard U.S. Government contract form,
that the money was allocated by the U.S. Army Financial
Command, and that the contract was paid with a check drawn
on the U.S. Treasury.
In the end, the U.S. Government agreed that the case was
actionable under the False Claims Act.
A jury trial was held in February and March of 2006. In the
end, the jury ruled for the whistleblowers and the U.S.
Government, finding Custer Battles liable for over $10
million in damages and penalties. The jury awarded maximum
damages on every single point.
Noted Jim Moorman of TAF, "The Custer Battles case
represents the first False Claims Act fraud case involving
defense procurement in Iraq, and it was won solely through
the extraordinary effort of Alan Grayson and his team,
working on behalf of his whistleblower clients."
Following the jury verdict in
the Custer Battles case, a judge overturned the verdict on a
legal technicality and an interpretation of the law which
both the U.S. Government and Senator Charles Grassley, the
law's principle author, disagree with. Notes Jim Moorman of
TAF, "We expect the trial judge's decision to be reversed on
appeal. What is not at issue is that fraud occurred and
that the American people, as did the jury, want the law
upheld and justice done.
Taxpayers Against Fraud will be presenting its Lawyer of the
Year award to Alan Grayson on September 12th in Washington,
D.C.,
at a conference featuring such distinguished luminaries as
Congressman Howard Berman (D-C) and former Attorney General
Edwin Meese. For more information, contact: Patrick Burns,
Taxpayers Against Fraud (202-296-4826 ext .
24).
___________
n
To schedule an interview with
either Mr. Grayson or Mr. Moorman, call:
Patrick Burns (202) 296-4826 ext. 24 or contact by
email at PBurns@taf.org
