Grayson Recovers $8.7 Million for Govt. from War Profiteers DynCorp International LLC and The Sandi Group (TSG)

Former U.S. Rep. Alan Grayson made a name for himself before he went to Congress by suing defense contractors for what he labels war profiteering.

Now that he lost his seat representing Florida’s 8th Congressional District, Grayson has returned to that work.

Federal whistleblower law allows private citizens to sue on behalf of the federal government and collect a portion of any money collected. Representing whistleblower clients Drew Halldorson and Brian Evancho, Grayson sued DynCorp International LLC and The Sandi Group (TSG), claiming the contractors had ripped off the government for work in Iraq.

The companies settled the case with the U.S. Department of Justice in April, and paid attorney fees last week. Under terms of the settlement, the companies agreed to reimburse taxpayers $8.7 million, of which about $500,000 will go to Halldorson and Evancho. Separately, the companies paid another $200,000 in attorney fees.

DynCorp paid the most — $7.7 million — to resolve allegations that it submitted inflated claims for the construction of container camps in Iraq. TSG agreed to pay $1 million to resolve claims that it sought reimbursement for danger pay that it falsely claimed to have paid its American employees in Iraq.

Grayson, a Democrat who lost his seat to Republican U.S. Rep. Dan Webster last year, is running again. This time, he’s after a new House seat that’s expected to be created through redistricting.