Fraudulent billing for security services

Brief

HKA was commissioned to analyze the report prepared by the whistleblower’s expert and provide an expert opinion on its estimate of penalties payable under the FCA.

What we did

Led by a senior forensic accountant who is also a qualified expert in this industry, the HKA team investigated the facts and evaluated the report’s analysis and interpretation. 

This work included:

• Interviewing the client’s personnel responsible for contract performance, based in the US and in Afghanistan.
• Analyzing accounting and other relevant business records to establish the extent of any over-billing, quantifying those costs, and investigating the claim that invoiced amounts were invariably misstated.
• Determining if, as alleged, the federal government was invoiced for services not provided, and whether the issues at hand were material or not to DoS payment decisions.

Outcomes

Drawing on our knowledge of industry norms and practices, as well as forensic accounting expertise, the HKA investigation was able to demonstrate that the report commissioned by the whistleblower had improperly assessed the materiality of the alleged shortcomings in contract performance and exaggerated the significance of the marksmanship tests and incidence of over-billing.

HKA’s expert report facilitated the full disclosure of salient information, provided a robust appraisal of the extent of contractual non-compliance, and ultimately, paved the way to a negotiated settlement with the DoS.