United States ex rel David R Vavra and Jerry Hyatt v Sealed Defendants Eastern District of Texas Cause No 104CV0042

This government investigation was conducted by two United States Attorneys? Offices, the Defense Criminal Investigative Service, the FBI, the IRS, Criminal Division, and the U.S. Army Criminal Investigation Division. The investigation was originally prompted by the filing of a sealed qui tam action by former consultants to the Company. In the qui tam, relators alleged a host of allegations with respect to overcharging on transportation services to the Iraqi theater for the Department of the Army and with respect to misconduct in the solicitation of government subcontracts. Ultimately, two mid- to high-level employees of the company pled guilty to these substantive crimes and to obstruction of the government?s investigation through the creation of fictitious invoices and lying during interviews by government agents. Following the first guilty plea, the company was suspended from working on any further government contracts. Through extensive negotiations, Haynes and Boone was able to convince the government to revoke the company?s suspension, decline indictment, and to settle the case favorably and as a civil matter, thereby avoiding various potential tag-along litigation.