Fed Jury Finds Defense Contractor IIF Data Solutions Innocent of Whistleblower Charges That It Defrauded USA

WASHINGTON, Oct. 28 /PRNewswire-USNewswire/ -- In the culmination of a three-year civil case brought under the False Claims Act, a federal jury in the United States District Court for the Eastern District of Virginia, in Alexandria, VA, yesterday unanimously found that IIF Data Solutions and Charles Patten, Sr., its founder and president, did not defraud the United States Government in contracts with the Army National Guard. The plaintiff sought $140 million in damages, which would have been trebled under the False Claims Act.

"This is the first time in my career both in the National Guard and as a private contractor I have ever been accused of any unethical conduct. As I have often said in the last three years, no one who does what the plaintiff accused me and IIF of doing should ever be allowed to contract with the Government. We did not do anything wrong, and I am happy and relieved that the jury agreed," said Mr. Patten, a retired Major with 27 years of service in the Army National Guard. "The cloud this case put over all the good people at IIF who proudly provide the highest quality services to our Government customers was unfair. Like many companies that are falsely accused of wrongdoing, we were tempted to settle to end this nightmare. However, we came to the conclusion that it was better to stand and defend ourselves in court, rather than cave in to such baseless allegations. My heartfelt thanks to our new trial team, for their confidence in our integrity, their lack of fear in taking this case to a jury, and the skill with which they represented us."

"The False Claims Act serves an important purpose of helping to combat fraud against the Government. But a False Claims Act case when brought against an innocent contractor like IIF and Charlie Patten can be a huge club to force even the most honest contractor into a settlement to pay off a plaintiff who really has no case," explained Robert Cynkar, Esq. of Cuneo Gilbert and LaDuca, LLP in Washington, D.C., one of IIF's attorneys. "Sometimes, as in this case, a company needs to go to trial to vindicate its good name."

"All too-often government contractors are counseled to settle such cases rather than risk fighting them before a jury," added Christopher Kachouroff, Esq. of Dominion Law Group, P.C. in Virginia, another IIF attorney. "GSA Schedule contracts, where being on the Schedule just allows a company to bid on the real contracts with other agencies, have been a fertile ground for unscrupulous plaintiffs to concoct meritless fraud cases. As was true here, a plaintiff will try to claim fraud based on a dispute over the terms of the Schedule contract, when that contract doesn't get the contractor any money. The real customer, the National Guard, has consistently given IIF high marks in all the work it has done and continues to do for the Guard. You know a fraud case is frivolous when the supposed victim of the fraud not only does not cancel any of the company's contracts, but continues to seek their services. When honest contractors win, the United States wins."

IIF's trial team included Mr. Kachouroff, Mr. Cynkar, James Duane, of counsel to Dominion Law Group, P.C., and Jason Workmaster of McKenna Long and Aldridge.

IIF Data Solutions Inc. provides consulting, program development, training delivery and development, information technology, business management, program management, and manpower support services to the National Guard, U.S. Army and Department of Defense, among other clients. It is a privately held corporation based in Centreville, VA.