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Two to split $480,000 for alerting feds about overcharges in Iraq

By Terry Frieden, CNN Justice Department Producer
  • DynCorp will pay the U.S. government $7.7 million and The Sandi Group will pay $1 million
  • The Justice Department says the payouts are because they overcharged for work in Iraq
  • Two whistleblowers, who worked for The Sandi Group, will get part of these payments
  • Federal investigators continue to look into other potential false claims in Iraq

(CNN) -- Two whistleblowers will divide nearly a half million dollars following the latest settlement between the Justice Department and independent contracting firms working in Iraq.

DynCorp agreed to pay the U.S. government $7.7 million, and its subcontractor The Sandi Group promised to pay a bit more than $1 million dollars for overcharges they presented to officials, the Justice Department said Friday in a press release.

Drew Halldorson and Brian Evancho, both former Sandi Group employees who alerted authorities about the overcharges, will divide $481,710 as their share of the government's recovery in the case, according to the federal department.

DynCorp was sued for inflated claims involving construction of camps from containers shipped to locations where contractors were able to set up temporary accommodations for fighting forces.

The Sandi Group was sued for improperly seeking reimbursement for "danger pay," which it falsely claimed to have paid its employees in Iraq, the Justice Department claimed.

"The hard work of stabilizing Iraq is challenging enough without contractors and subcontractors inflating the cost of rebuilding by making false claims at taxpayer expense," said Assistant Attorney General Tony West.

Spcial Inspector General for Iraq Reconstruction Stuart Bowen, Jr. said in the release that his office continues to pursue a number of other allegations involving false claims.