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Subscribe to RSSWASHINGTON, D.C. -- The U.S. Justice Department on Wednesday accused Gallup Organization, the country's most venerable and best-known political polling firm, of bilking the U.S. government on millions of dollars in federal contracts.
In a federal court filing, DOJ lawyers said they will pursue some of the claims first made in a lawsuit filed by a Gallup whistleblower who accused the polling organization of routinely inflating bills on polling services for the U.S. Mint, the U.S. Passport Agency and the Federal Emergency Management Agency.
Gallup -- a Washington, D.C.,-based company that promotes itself as "the most trusted name in polling" -- did not immediately respond to a request for comment. The announcement comes at an awkward time for Gallup, in the middle of an election season when the company's polls are routinely cited in coverage of the presidential election. (In its latest tracking poll released Wednesday, Gallup has Mitt Romney ahead of President Obama by a 47 to 45 percent margin. http://www.gallup.com/poll/154559/US-Presidential-Election-Center.aspx)
The whistleblower, Michael Lindley, served as director of client services for Gallup from February 2008 until July 2009, when, according to his lawsuit, he was abruptly fired after complaining about the alleged overbillings and threatening to go to the Justice Department if they didn’t stop.
"When you start talking about going to the Department of Justice, I don't trust you anymore," Lindley alleges he was told by the firm's top lawyer, according to a copy of his complaint obtained by NBC News.
In a DOJ press release, Ronald Machen, the U.S. Attorney for the District of Columbia, said the decision to intervene shows "we will do all that we can to act against those who illegitimately bill the American taxpayers."
Lindley filed his lawsuit under seal in October 2009 as a so-called "qui tam" case that allows private whistleblowers to recover a portion of fraudulent billings that they bring to the U.S. government's attention. HIs complaint, made public for the first time on Wednesday alleges a wide range of improprieties within Gallup -- not all of which were accepted by the Justice Department after a nearly three-year investigation.
According to Lindley's complaint, Gallup effectively kept two sets of books on its federal business -- one that inflated its costs that were submitted to government agencies, another internally that reflected the firm's real (and much lower) costs to perform the work.
As an example, Lindley alleges that Gallup received a $2 million a year sole source contract with the U.S. Mint to conduct surveys on the likely purchasers of newly minted coins, such as presidential coins. In its budget presented to the Mint, "Galllup would inflate the number of hours required to complete the work, usually by a multiple of two or three times," the complaint alleges.
Gallup also submitted "vastly inflated" budgets for its work for the U.S. Passport agency in support of a five year, $25 million sole-source contract for surveys aimed at predicting the number of passport applications that would be needed under new border control laws requiring travelers to Mexico and Canada to carry passports.
Those claims were adopted by Justice in its decision to intervene. In another part of his complaint-- that was not adopted by Justice but remain outstanding against the company-- Lindley alleges that Gallup officials drafted large portions of a federal bid proposal by the U.S. Army for survey research in Iraq to insure that Gallup was the only polling firm that qualified. (The original bid proposal, he alleges, asked for a company that had 70 or more years of polling experience; it was later rewritten to say 10 or more years of experience and Gallup was awarded the $15 million contract.)
The lawsuit also alleges that Gallup violated "clear conflict of interest" rules by offering a job to a high level FEMA employee who played a role in steering a $12 million, five-year contract to Gallup. Justice lawyers said in their filing they plan to assert "additional claims" relating to the FEMA contract, but did not identify what they are.
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So here we go again... big business treating the government right! And the GOP says businessmen are good?.... yup.....
So why haven't they gone after Haliburton? Oh wait, can you say dick cheney?
Looks like Romney must have topped a Poll. Sue em with-Holder!! Sick em dog!
You have to be kidding me.
This is the same DOJ:
Yeah, I trust the DOJ as much as I trust this administration and Liberal Cabinet members.
This pretty much sums it up....retribution
Why now? Pre-election?
Actually, reading this article I can't help but wonder what the heck the government is doing spending money on polls. But, given that there appears to be over billing by Gallup, people shouldn't be shocked. The fact is that that way government contracts with anybody invites fraud. What's the incentive for someone in the government to make sure that a contract is fair or that it is followed the way it should be? If you are an employee of the government and you see a problem, what do you get if you decide to do something about it? You get more work and a lot of headaches. I can see a lot of the "bosses" complaining that you aren't getting enough done, as in not handling enough contracts. It takes a lot of work to dig into the dirt and if you're not getting paid anymore to do so, why do it? And if it turns out that you are wrong, how happy do you think your boss would be?
Just saying.
A lot of businessmen are good, that doesn't mean that ALL businessmen are good. And this is a big corporation with federal contracts. Just about any corp with federal contracts screws the govt. As much as I despise and detest this admin's DoJ, I will support this move. I also back the whistleblower for coming forth with the hutzpa to say "if you don't stop screwing the govt, I am going to the Justice Dept". They didn't and he did. Good for him. I worked for DoD and they screwed the taxpayers left and right and you didn't dare try to turn the $Bs of fraud and waste in or 1) save the taxpayers a dime or you became the #1 hated enemy in your organization; and 2) your career was over. Integrity was NOT allowed. In fact, they couldn't even find the word in their lexicon. So I have a lot of respect for this guy, but I also know there are a lot of honest companies and businessmen out there. Don't judge them all by a few.
I am also wondering why the govt is even asking for polls on some of these subjects! Who cares how many passports will be requested for people going to Mexico (who the H-e-w-L would want to go there anyway?); and who cares how many people buy those dimes out of the mint? Can't those agencies figure that out on their own based on past experience instead of spending taxpayers' dollars on a contract like this? This is a complete waste of government money. Stop spending money on useless contracts like this and do it in-house. Some of the reasons for these contracts are really stupid and a waste of funds we don't have to waste.
@imwhitewolf: Cheney is not in office any more if you take a look around. It is Obama (mores the pity), so Haliburton is not bullet proof any more. Apparently no one is seriously looking at Haliburton now, but I agree, they need to be taken down.
I bet if they still had Obama ahead in the polls they wouldn't have touched them until after the election.
Last time I checked he was ahead in the polls.Give it a rest clown.
Now we know why Gallup has been the only national poll that had Romney ahead!
Yeah, we should have a poll conducted by Acorn.
The company upset some in DC, who has the power & didn't like the numbers?
Theres a 99% chance of a settlement I bet.
scumbag capitalist pigs ripping of the people again. its a good thing they are not into medicare.
Yeah, let's ensure the IRS (a very trusted Government Agency) takes care of administering FINES on folks for not having Health Care.
Only contraians like 'Ido Rant' would need to be concerned, they would probably die first than accept any medical plan they disagree with, just out of stubbornness.
No, No tell me it isn't true. A big business Over charging our government?? I just can't believe it. I must be dreaming. I think a Slap on the wrist is in order here. Which is about all they will get. Why is there No Jail time for Big Business'es who cheat our government??
And this is why the government is in debt. As I am, through intuitive reasoning alone, postitive this is rampant throughout this nation. From defense contracts, which I feel are most likely the worst, to NASA, to schools, etc.
It is solely because we are too lazy to perform a thorough investigative bidding process like a normal business would do. Even like you or I would do.
I do not see it changing regardless of the party in power.
If the right privatizes then it becomes more rampant.
If the left grows government then its not my job - if you understand what I mean.
A whistle blower exposing what is going on inside the company doesn't have anything to do with how their polls rate the administration.
The whistle blower is speaking out about what is wrong within the system, not trying to create a partisan issue.
The real facts here that the right wishes to cover up is that the private market is the biggest driver of "government waste". Every business that sees a government contract just sees it as another way to soak the public for money.
The private market is not the grand, caring, safe haven it is made out to be by conservatives.
oppie hogwash 59% of business disapprove of obama's record 35% approve i'm sure a good % of the 35% i'm sure have government contracts. chicago politics which is mostly democratic notoriously give out fat government contracts to friends they catch people with thier hand on the cookie over and over again and most times they always the democrats
the obama regime waited until gallup showed obama losing.
typical behavior from obama
Ah, keck I missed you stupid trolling ways. You forgot to say that Obama is a muslim, communist, kenyan and a community organizer. Please try not to leave these facts out in the future or Obama's dog Bo might start looking for you. Man, your trolling ways are slipping... what you smoking over there?
Neither are ahead or behind if you take the percentage of error into consideration. This poll does not seem to match other polls. It could be that Gallup did change they way they formed their sampling.
Any bets that this will be the ONE AND ONLY article about the Gallup Poll? Why are we surprized? There is fraud and corruption every where you turn in government.
So what is new about it. There are allot of companies that rip off the tax payers. Most of them with ties to those in the Senate that can do them the most good. You have to remember that this is the most corrupt unethical Congress in the history of the US. What Gallup ripped us off for is just a pittance.
If the Justice Dept. really wanted to get some real thieves they would go after the illegals who have filed falsified tax returns for the last few years stealing over 5 Billion from the tax payers.OH wait I forgot , they are protected by Obama and his gang of thieves
IRS screening is very good, better than your 'facts'.
Not even to bother mentioning their "polls" are the biggest pile of crap there is.. They don't know who is ahead, they try to persuade outcomes, just like the moron from gallop who called me tried to steer me into his way of thinking... Hell, we don't even know if they are answering the poll with the same answers being given to them or if they just make this crap up, like Romney.
According to Gallup, 54% of Americans disagree that the government was overcharged.
These polls aren't worth much anyways. I had no idea the federal government was actually paying for them. The numbers could be made up, but even if they aren't extrapolating 100,000 people to represent all of the USA is not sufficient.
Chump change compared to bilking going on with Dod contracts. Surprised DOJ would even waste manpower chasing nickels.
Start with Haliburton, AECOM. Then pry lid open under DOJ's own Bob barker Enterprises.
Consultants are there to milk money and this news is no surprise. Happens all the time. It is the same deal many defense contracts. To add insult to injury many (not all) Govt workers rely on the consultants to work and get the job done, while they spend time working on unimportant stuff or do 1 hr of work in a 8hr day.
Restructuring (read Bain, FTI Alvarez Marsall etc...) folks also milk the companies big-time. Banks and creditors force companies in trouble to hire restructuring consultants to prepare for Chapter 11 filing. The consultants come and make sure they bill as many hours as possible and they also make sure they get paid first (+lawyers of course) in the DIP financing.
Circuit City: Every consultant (McKinsey, AT Kearney, Deloitte) made money during 2000s. Circuit City did not survive, new set of consultants (restructuing type) came and milked even more money. Companies do not want to change fast enough. Even though the consultants give very good proposals, companies ignore it. Sometimes CEO is obligated to hire consultants -even though he knows the answer.
Story repeats .. Growth is good, but cannot last forever.
Any organization that hires consultants to run its operations is just an organization that has less talented people or they do want to hire good people, and pay consultants one time fee...
Sounds like Gallup and Romney use the same bookkeeping methods, you gotta like the like-minded.
ya you know those rich people who start business and makes millions are evil darrall i bet ya if we tax the heck out of them they will hire more people
Republicans are the American Taliban!
Wow Gallup releases a Poll Show Romney 3 points or better ahead of Obama and couple of days ago and suddenly the Fed's are suing Gallup?
Just one more reason to Refuse To Re-Elect ANY of these Wall Street Corrupted Incumbents whether the be Democrat or Republican for we can not trust ANY OF THEM Any More Especially NOT that Goldman Sachs & Secret Al-Qaeda Supporting Bailout Obama!
There's just too many Strange Coincidences against US and the Truth That Keep Slipping in on US when dealing with Back Door Barry!
Let's see.....two million dollars to perform polls for the US mint....458 million to pbs.....President Romney cuts a million here, a million there......could add up to real money.
They are trying to make it look close so that when Romney wins, they can cry foul, go through the votes, start finding them in car trunks, closets, under dinner tables, in the baby crib, where ever. These people are demonic led by Satan himself, Gas Chamber George Soros and his band of Shadow Gov't hoods, Clintons, Maurice Strong. I hope there are some snipers out there hunting that old piece of human excrement down. He's going to try and steal this election, rip us off by destroying our currency. You old fool, you're gonna burn in hell.