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News | Oct. 8, 2020

QuantaDyn Corporation and Owner Settle False Claims Act Allegations of Bribery to Obtain Government Contracts for Simulators

By DCAA Staff Writer

On September 15, 2020, the Department of Justice announced a settlement with QuantaDyn Corporation to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea. The company agreed to pay $37.8 million in restitution to resolve the company’s civil False Claims Act liability and fines totaling $6.3 million.  Mr. William T. Dunn, the majority owner, President, and Chief Executive Officer, separately agreed to pay $500,000 to resolve personal False Claims Act liability. 

In a separate action, QuantaDyn entered into a plea agreement to resolve criminal allegations related to the bribery scheme. On January 15, 2020, the US Attorney’s Office for the Western District of Texas unsealed indictments against QuantaDyn, the former Air Force Contracting Official, and other individuals. Under the plea agreement, QuantaDyn has agreed to plead guilty to conspiracy to commit wire fraud, serve a five-year term of probation and take certain remedial measures, and pay $37 million in restitution, a criminal penalty of $6.3 million, and forfeiture of $7.1 million.

DCAA Senior Auditors Davina Moore and Brian Norris assisted the investigation by performing various analysis on contractor’s billings, contractor’s incurred cost, and claimed profits. 

Read the Department of Justice press release here

Read the Western District of Texas press release here.