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, unrelated, 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.