Whistleblowers Trigger Investigation
The DOJ’s charges originated from a whistleblower lawsuit filed by Mark G. Davis, a U.S. Army veteran and former vendor salesperson, and Andrew G. Gunn, a U.K.-based company director. Under federal whistleblower provisions, they will receive $561,000 from the settlement for their role in exposing the fraud.
The scheme circumvented a key requirement: contracts valued at under $25,000 must be awarded after two competitive bids, while higher-value contracts require three independent quotes. The DOJ said that this process was “deliberately bypassed,” leading to military overpayments for Berg’s shelters.
Settlement Sends Strong Signal on Accountability
Though Berg was acquired by Hunter Defense Technologies Inc. in 2019 and has since changed ownership, the company cooperated with authorities. The U.S. Attorney’s Office in Massachusetts, which helped lead the probe, acknowledged Berg’s willingness to resolve the matter and accept responsibility.
“This settlement demonstrates our commitment to rooting out fraud, waste, and abuse involving taxpayer funds,” said U.S. Attorney Leah B. Foley. “We will also recognize when companies step up and cooperate.”
The DOJ confirmed that the remainder of the case remains under seal, and further enforcement action may be forthcoming.
Berg Companies and Hunter Defense Technologies did not immediately respond to requests for comment on Tuesday.
