BADGES OF FRAUD

THERE CANNOT BE TWO SETS OF FACTS. Both sets of documents shown below completely disprove the DOJ's sworn statements and public affirmations to the federal courts. Either, standing alone, or together, demonstrates how much the Treasury Department was shorted. This is even more evident when coupled with the USCG's internal reports (pre-settlement negotiations and final settlement analysis.)

Compare Document Set # 1 with Document Set # 2. If either one is true then it appears (1) the DOJ and USCG lied to the Courts and the Treasury Department and (2) they delivered and restored less recovery proceeds to the Treasury than was owed. If Document Set #1 and #2 are both true, then the filing Plaintiff's Original FCA Complaint was 100% accurate and true. (Remember, filing Plaintiff had been rehired after retirement specifically to audit the Prime Contractor's government contract, production and spares status and compliance and had just completed the 1 year long, computer assisted and detailed audit 30 days before disclosing the fraud to the government (as required by the FCA.)

SECTION 1 - Document Set # 1 - 02/06/90 - Documented in DOJ - Avco-Lycoming Textron's MOU.

This MOU was unilaterally negotiated by the government (DOJ and USCG) with defendant Avco Lycoming Textron while (1) the filing Plaintiff's lawsuit was still sealed (2) the Government had neither requested nor received the Courts permission to intervene in the filing Plaintiff's lawsuit and (3) without the delivery of any type of written audit or detailed definition of the "alternate remedies" the Government was negotiating with the Defendant. This document defines hundreds of millions of dollars worth of the hidden qui tam proceeds. The DOJ repeatedly has claimed, and continues to claim, these were the results of their "contract claims" and not the filing Plaintiff's FCA lawsuit. U.S. Coast Guard documents, received under the Freedom of Information Act, disproves the DOJ's statements. Additionally, these same documents confirm that the DOJ knowingly made these false statements and claims to the filing Plaintiff, in order to reduce the amount of proceeds that were to be restored to the public fisc (deliverable to Treasury... not the defrauded agency.)

SECTION 2 - Document Set # 2 - 05/26/88 - Documented by Avco-Lycoming Textron's Lee Remsen.

Cover	P.1	P.2	P.3	P.4	P.5
The 6-page FAX above (see photocopies of each page by clicking on them) is a document from the AVCO Program Coordinator to the AHC Director of Materials, dated May 26, 1988, and lists the items enacted, performed, and forfeited in settlement of the qui tam lawsuit. This alleged fraud was verified on 07/20/87 and disclosed to the FBI for the first time on 08/19/87. This fax, dated 05/26/88, was generated almost a year after the qui tam relator's disclosure and lists additional "alternate remedies" supplied to the USCG to mitigate the damages (including spare parts discounts and full engines at reduced prices.) None of the items in the table below were disclosed to the Court by the DOJ. Also, it is important to note that many of the table's line items are of immense dollar value but cannot be priced without an audit. The U.S. Treasury did not receive any of this money as "proceeds of the action or settlement of the claim" from the defendants, FBI or DOJ. The table below is a simple recap of the items described in the 6-page FAX and represents proceeds of at least $26,000,000.00. These undisclosed proceeds are in addition to the approximately $17,000,000.00 desclosed and described to the court. Also, it does not include the additional $27,000,000.00 that AHC forfeited to the USCG in the specific Dockets dismissed in the Department of Transportation's Board of Contract Appeals (BOCA), 14 days after the U.S. District Court for the Northern District of Texas, Fort Worth Division, approved this case's settlement. The DOJ Press Release announced $17+ million as fraud-recovery-proceeds. You do the math. Where is the rest of the U.S. Treasury's cash?