Topic · civil-cyber-fraud

Civil Cyber-Fraud Initiative

DOJ Civil Cyber-Fraud Initiative specifically — settlements, declined interventions, public statements about the program.

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judicial
DOJ Arrests Tech CEO for Hiding Russian Ownership From Feds
The complaint doesn't allege a breach or a defective security control, it alleges the company lied about who owned it and where the code was written, and that's now a criminal matter.
DOJ arrested the CEO of a Virginia software firm and a Russian national for allegedly concealing that the company was owned and controlled by Russian nationals and that its software was developed in Russia. The firm sold software to U.S. government agencies. The complaint (filed in the Eastern District of New York) charges conspiracy to violate the Export Control Reform Act and other offenses tied to procurement of controlled technology for a Russian end user. The case signals DOJ is willing to treat supply-chain deception in federal software procurement as a criminal matter, not just a contractual dispute.
SEP 23
judicial
Honeywell Aerospace Pays $2.04M to Settle DFARS Cyber FCA Case
The settlement continues DOJ's Civil Cyber-Fraud Initiative string of enforcement actions against defense contractors for cybersecurity noncompliance on federal contracts.
Honeywell Aerospace Inc. agreed to pay $2,042,518 to resolve False Claims Act allegations that it failed to comply with cybersecurity requirements in a Department of Defense contract. The DOJ press release does not specify which DFARS controls were at issue or what contract was involved. Honeywell Aerospace was a business segment of Honeywell International Inc. until June 29, when it became a standalone public company. The settlement follows a pattern of CCFI enforcement actions against defense contractors, including the $8.4M Raytheon/Nightwing settlement and the $4.6M MORSECORP settlement earlier this year.
SEP 1
judicial
Sierra Nevada Company to Pay $7.75M in FCA Cyber Settlement
The latest Civil Cyber-Fraud Initiative enforcement shows DOJ doesn't need a breach to extract millions. A false cybersecurity attestation is treated like a padded invoice.
Sierra Nevada Company has agreed to pay $7.75 million to resolve False Claims Act allegations that it submitted false claims regarding its cybersecurity compliance in federal contract submissions, the U.S. Attorney's Office for the Eastern District of Virginia announced. The settlement fits a now-familiar Civil Cyber-Fraud Initiative pattern, joining ATI-Gallant, MORSECORP, and Raytheon/Nightwing, in which DOJ has extracted millions without alleging any data breach or system compromise. The false attestation alone was the claim.
JUL 28

Civil Cyber-Fraud Initiative

DOJ Arrests Tech CEO for Hiding Russian Ownership From Feds

Honeywell Aerospace Pays $2.04M to Settle DFARS Cyber FCA Case

Sierra Nevada Company to Pay $7.75M in FCA Cyber Settlement