Article in newspaper 8.21.04

[bubba]

Had to do a double take when I picked up the paper this morning..............

Glad to see the different spelling of the company name after a closer read..........

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Company to pay U.S. for fraud

Vortec Corp. of Collegeville will spend $4.5 million to settle a lawsuit by its former accounting manager.
By Joseph A. Slobodzian

Inquirer Staff Writer


A local government contractor has agreed to pay $4.5 million to settle a "whistle-blower" lawsuit by a former employee who revealed how it cheated the Energy Department.

Under the settlement announced yesterday between the U.S. Attorney's Office and Vortec Corp. of Collegeville, the company's former accounting manager, Donald Eastmond, will receive $1,080,000 from the settlement under whistle-blower provisions of the U.S. False Claims Act.

But the settlement will not be a windfall for Eastmond or the government. Because of Vortec's financial problems, said Assistant U.S. Attorney Cedric D. Bullock, the government took the unusual step of letting Vortec and owners James and Patricia Hnat pay the amount over seven years.

Patricia Hnat yesterday released a statement on behalf of Vortec saying the company "disputes the allegations" but is "glad to have the agreement settled so the company can continue its research and development business."

Thats sucks, but not us..