Whistleblower And United States Attorney Achieve Settlement Of Job Placement Fraud Action

NEW YORK, Dec. 19, 2012 /PRNewswire/ -- Whistleblower Bill Harper, represented by Robert Sadowski and Raphael Katz of Diamond McCarthy, and The United States Attorney for the Southern District of New York settled yesterday a False Claims Act qui tam case against the Structured Employment Economic Development Corporation (SEEDCO).  Mr. Harper also settled his retaliation claim against SEEDCO. SEEDCO is a national not-for-profit corporation that operated two New York City Workforce1 Career Centers. Workforce1 exists to help New York residents find jobs, which has been particularly important during the economic crisis.

According to the Complaint, SEEDCO received millions of dollars in federal grants including economic stimulus funds to operate the Workforce1 Centers and to provide job placement services.  SEEDCO fraudulently claimed credit for job placements it did not make and received federal funds for each of these fraudulent placements.  SEEDCO submitted to New York City false reports of placement.   SEEDCO also used these falsified reports to negotiate, obtain, and renew its contracts with New York City.  

Mr. Harper was the Deputy Director of SEEDCO's Upper Manhattan Workforce1 Center.  According to the complaint, he discovered SEEDCO's fraudulent scheme and first blew the whistle internally, expecting that SEEDCO management would put a stop to the scheme.  Instead, he was marginalized and realized that SEEDCO was covering up the fraud.  He contacted the New York Times and then commenced this lawsuit. SEEDCO responded by attacking him personally in the New York Times article.  SEEDCO will be issuing a full retraction of its comments.

Robert W. Sadowski and Raphael Katz of Diamond McCarthy LLP represented Mr. Harper.  Mr. Sadowski stated "United States Attorney Preet Bharara and Assistant United States Attorney Sarah North did an excellent job of investigating and pursuing Mr. Harper's claims.  Mr. Harper acted courageously and is a tribute to those who will not tolerate the misuse of taxpayer dollars."

About Diamond McCarthy

Diamond McCarthy is a boutique law firm focusing in the prosecution of financial fraud, Qui Tam (whistleblowing), negotiating complex business disputes and dissolutions, and resolving difficult bankruptcy workout and restructuring matters throughout the United States and internationally.  With offices in New York, Austin, Houston, and Denver, Diamond McCarthy has extensive international experience in Europe, Canada, Asia, Australia, and Latin America.

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