Opinion ID: 786897
Heading Depth: 2
Heading Rank: 2

Heading: Drake's Complaint

Text: 14 Plaintiff commenced his qui tam action on June 14, 1994 alleging that he had uncovered a number of False Claims Act violations committed by defendants. He filed the complaint under seal in accordance with the above procedures. The government investigated the matter for three years and, finally, on June 2, 1997, declined to intervene. The complaint was then unsealed, served on defendants Norden and United Technologies, and later amended twice. Drake filed his second amended complaint on December 17, 1997. 15 He based his claims on billing and accounting practices that he uncovered as supervisor of facilities accounting in Norden's finance department. Plaintiff's claims are divided into four counts — two against Norden alone, one against United Technologies alone, and one against Norden and United Technologies together. 16 Count 1 asserts Norden violated 31 U.S.C. § 3729(a)(1) and (a)(2) by knowingly presenting the United States with false claims for payment and backing up these claims with false records or statements. According to Drake, these claims, records, and statements were contained in the following categories of documents that Norden transmitted to the government: (1) progress bills, (2) certificates of indirect cost rates, (3) disclosure statements, (4) contracts, and (5) Present Responsibility Reports. Drake alleges Norden's claims were false because they included: (a) unallowable property tax costs, (b) the depreciation costs of assets that either did not exist, had been sold or written off, or were unrelated to government contracts, (c) the depreciation costs of assets that were not capitalized according to Norden's written policy, and (d) certain costs that were inaccurately categorized as relating to research and development. 17 Count 2 asserts Norden violated 31 U.S.C. §§ 3729(a)(7) and (a)(2) by making false statements to conceal an obligation to repay money to the United States. Count 3 makes the same assertion against United Technologies. As with the statements alleged in Count 1, Drake alleges the false statements on which Counts 2 and 3 are based were contained in: (1) progress bills, (2) certificates of indirect cost rates, (3) disclosure statements, (4) contracts, and (5) Present Responsibility Reports. 18 Count 4 asserts Norden and United Technologies conspired, in violation of 31 U.S.C. § 3729(a)(3), to defraud the United States by getting a false claim allowed or paid. According to Drake, this occurred after he brought Norden's improper accounting practices to United Technologies' attention. Instead of rectifying the situation, United Technologies allegedly entered into an unlawful understanding and agreement with Norden to conceal the misconduct and allow Norden to continue defrauding the government.