Former Subcontractor Supporting U.S. Army in Afghanistan Agrees to Forfeit Nearly $3.5 Million

            WASHINGTON – The United States Attorney for the District of Columbia announced today that it reached a civil settlement agreement with FedSys, Inc. to resolve the Government’s lawsuit alleging the subcontractor committed fraud in its recruitment and training of linguists to translate languages native to Afghanistan. Pursuant to the settlement, FedSys agreed to forfeit $3,469,882.50 to the United States.

            In September 2007, Mission Essential Personnel, LLC was awarded a prime contract by the United States Army for translation and linguistic services to support military operations in Afghanistan. In December 2008, Mission Essential subcontracted with FedSys to recruit and train linguists in support of the prime contract. On Aug. 23, 2024, the United States filed a lawsuit in the U.S. District Court for the District of Columbia claiming that actions of FedSys, its chief executive officer, and its director of recruiting under the FedSys subcontract violated the False Claims Act (United States v. FedSys, Inc., et al., Civ. A. No. 24-2450).

            Specifically, the Government alleged that FedSys personnel created fictitious linguist candidates that did not meet the minimum language proficiency standards in Dari, Pashto, or English, and then engaged a third party to impersonate the candidate during the initial translation proficiency testing. The alleged goal of the scheme was to create candidates who would pass the initial proficiency test so that FedSys managers and recruiters could collect recruitment fees and bonuses through the subcontract. In all, fourteen FedSys recruiters, forty-three candidates, and two FedSys managing officials were identified as part of the fraudulent scheme. Five individuals later pled guilty to their roles in the conspiracy.

            “Properly trained linguists in a combat zone are vital to military operations, significantly reducing risks and safeguarding the lives of our Soldiers,” said Special Agent in Charge Keith Kelly, Department of the Army Criminal Investigation Division, Fraud Field Office. “This settlement underscores the importance of businesses contracted by the U.S. Army honoring their commitments; no amount of money can ever justify putting a Soldier's life at risk.”

            “The professionals of the Defense Criminal Investigative Service, along with our partner agencies, are dedicated to maintaining the integrity of U.S. defense procurement processes,” said Stanley A. Newell, Special Agent-in-Charge of the Transnational Operations Field Office for the Defense Criminal Investigative Service. “Those who enrich themselves through fraud and deception at the expense of American taxpayers will be vigorously investigated and brought to justice.”

            The Government’s lawsuit further alleged that internal warnings of improper recruiting activity were effectively ignored by FedSys senior management until Mission Essential raised questions about the number of candidates who failed subsequent proficiency testing even though those candidates were presented as having passed the initial proficiency testing.

            The subcontract between Mission Essential and FedSys was terminated during the summer of 2012 and funds being processed by Mission Essential under the subcontract to pay FedSys were withheld. Pursuant to the settlement, those funds held by Mission Essential are forfeited by FedSys and will be paid to the United States.

            The civil settlement was completed by Assistant U.S. Attorney Sean M. Tepe, based on the efforts of former AUSA Darrell Valdez and Auditor Timothy C. Hurley. The United States Attorney further wishes to commend the special agents of Defense Criminal Investigative Service and Army Criminal Investigation Division for their important assistance.

            The claims resolved by the civil settlements are allegations only, and there has been no determination of liability.