March 26, 2008 — National Air Cargo

National Air Cargo (NAC) has agreed to pay $28 Million to settle a qui tam action filed against it by a former NAC employee, Mark Oehm.

The allegations of the case were that from January 1, 1999 through April 2005, NAC engaged in a pattern and practice of knowingly submitting false claims for payment by transporting freight wholly by surface transportation, rather than by air, when air transport was required by Department of Defense regulations, and by misrepresenting the actual delivery dates of the freight.

“Today’s settlement demonstrates the United States’ determination to ensure that contractors doing business with our military do not divert resources needed for our war effort into their own pockets through fraud,” said acting Assistant Attorney General Jeffrey S. Bucholtz, head of the Justice Department’s Civil Division.

The former employee who filed the qui tam action, Mr. Oehm, will receive $3,300,000 as a reward.

See U.S. Dept of Justice Press Release 3/26/08

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