DOJ: CYTERRA TO PAY $1.9M OVER FALSE CLAIMS ACT ALLEGATIONS

     (The following press release from the U.S. Justice Department was received 
by e-mail and was reformatted. The sender verified the statement.) 
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FOR IMMEDIATE RELEASE                                                           
CIV
TUESDAY, JULY 2, 2013                                                            
CYTERRA CORPORATION AGREES TO PAY $1.9 MILLION
TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS 
WASHINGTON - CyTerra Corporation has agreed to pay the federal government $1.9 
million to resolve civil liability arising from its failure to provide the U. 
S. Department of the Army with accurate, complete and current cost or pricing 
data for its sales of mine detectors, the Justice Department announced today.  
CyTerra, headquartered in Waltham, Mass., manufactures equipment, including 
portable mine detectors, used by the U. S. military. 
"The Department of Justice will hold accountable those who undermine the 
integrity of the public contract process in pursuit of financial gain," said 
Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of 
the U. S. Department of Justice.  "Those who wish to do business with the 
government are expected to do so fairly, and those who don't will face the 
consequences." 
In 2003, the Department of the Army awarded CyTerra a contract for 
the production and delivery of AN/PSS-14 hand-held mine detection units.  The 
contract was modified several times to provide for the production and delivery 
of additional mine detection units.  The government contended that, in 
connection with the negotiations concerning three of these contract 
modifications, CyTerra knowingly failed to provide the Army with the most 
recent cost or pricing data on the number of labor hours needed to produce a 
mine detector.  Under the Truth in Negotiations Act, CyTerra was required to 
provide cost or pricing data that was "accurate, complete and current."  The 
government alleged that if the Army had received such information, it would 
have negotiated a lower price. 
"Contractors who negotiate with the government must be scrupulous 
in their dealings with the government," said Carmen M. Ortiz, U.S. Attorney for 
the District of Massachusetts.  "Government contractors should be on notice 
that the requirements of the Truth in Negotiations and False Claims Acts will 
be enforced." 
The civil settlement resolves a lawsuit pending in federal court in the 
District of Massachusetts under the qui tam, or whistleblower, provisions of 
the False Claims Act, which allow private citizens to bring civil actions on 
behalf of the U. S. and share in any recovery.  The action was filed by Kevin 
Bartczak and Keith Aldrich, two former CyTerra executives.  As part of today's 
resolution, Bartczak and Aldrich will share $361,000 from the civil recovery. 
The case is being handled by the U.S. Attorney's Office for the District of 
Massachusetts and the Civil Division's Commercial Litigation Branch, with 
investigative assistance from the Defense Criminal Investigative Service. 
"The Defense Criminal Investigative Service (DCIS) is committed to working with 
its partner agencies, such as the U.S. Department of Justice, the Naval 
Criminal Investigative Service and the Army Criminal Investigation Command, to 
ensure the integrity of the Defense Department's procurement process," said 
Leigh-Alistair Barzey, Resident Agent-in-Charge of the DCIS Boston Resident 
Agency.  "This settlement agreement reflects that commitment and is a 
successful resolution of this investigation, which could not have occurred 
without the direction of the Department of Justice and the assistance of the 
Defense Contract Audit Agency's Investigations Support Division." 
The civil lawsuit is captioned United States ex rel. Bartczak, et al. v. 
CyTerra Corporation., Civil Action No. 06-CA-10550-NMG. 
The claims resolved by the settlement are allegations only, and there has been 
no determination of liability. 
13-751 
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