Matthew Decker, the former chief information officer for Penn State’s Applied Research Laboratory, is set to receive $250,000 as his share of a False Claims Act (FCA) settlement stemming from his qui tam whistleblower suit. The U.S. Department of Justice (DOJ) announced the $1.25 million settlement with Penn State on October 22.
The DOJ alleges that Penn State violated the FCA “by failing to comply with cybersecurity requirements in fifteen contracts or subcontracts involving the Department of Defense (DoD) or National Aeronautics and Space Administration (NASA).”
According to the DOJ, “Penn State submitted cybersecurity assessment scores to DoD that reflected it had not implemented certain controls, but misrepresented the dates by which it would implement them and did not pursue plans of action to do so.”
The DOJ further alleges that “in performing certain of the contracts and subcontracts Penn State did not use an external cloud service provider that met DoD’s security requirements for covered defense information.”
“Universities that receive federal funding must take their cybersecurity obligations seriously,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue our efforts under the department’s Civil Cyber-Fraud Initiative to hold contractors accountable when they fail to honor cybersecurity requirements designed to protect government information.”
Under the False Claims Act qui tam provisions, individuals may file lawsuits alleging government contracting fraud on behalf of the United States. In successful qui tam cases, whistleblowers are eligible to receive between 15 and 30% of the settlement.
In July 2023, a bipartisan group of senators introduced the False Claims Amendments Act of 2023, which address a few technical loopholes undermining the success of the FCA. The bill is widely supported by whistleblower advocates.
National Whistleblower Center (NWC) has issued an Action Alert calling on Congress to pass the bill.
Join NWC in Taking Action:
Demand that Congress strengthen the False Claims Act
Further Reading:
Bipartisan Legislation Unveiled to Strengthen False Claims Act