NEW YORK, March 16, 2016 /PRNewswire/ -- Whistleblower John Rubar and the United States Attorney's Office for the Northern District of New York have settled a False Claim Act qui tam action against Hayner Hoyt for $5 million. Mr. Rubar alleged in the complaint that Hayner Hoyt, through a scheme involving a sham company known as 229 Constructors, unlawfully diverted $14.4 million of Government funded construction contracts intended for service-disabled veteran-owned small businesses. Hayner Hoyt's owners, Gary and Jeremy Thurston, admitted, among other things, of having undue influence over 229 Constructors. The Government, including the Department of Veteran Affairs, awarded construction contracts to 229 Constructors, and Hayner Hoyt also received together with its subsidiaries approximately $1.3 million of subcontract revenue from those contracts, to which they were not entitled.
Mr. Rubar worked for twenty-four years for a subsidiary of Hayner Hoyt, where he most recently served as Vice President. In Mr. Rubar's whistleblower complaint, he alleged he was terminated in January 2014 in retaliation for being a whistleblower and for raising objections to the 229 Constructors scheme, and that Hayner Hoyt also retaliated against him by defaming him and causing him to be unlawfully arrested. That portion of the action remains pending in the United States District Court in Syracuse.
Raphael Katz and Robert W. Sadowski of Sadowski Katz LLP represented the Relator. Mr. Katz said: "This case represents the importance of the partnership between private individuals and the Government to rout out fraud. The United States Attorney's Office for the Northern District of New York worked diligently along with a courageous whistleblower to achieve this victory."
About Sadowski Katz LLP
Sadowski Katz LLP is a boutique New York law firm specializing in the prosecution of complex litigation involving financial fraud, and qui tam (whistleblowing) throughout the United States.
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