WASHINGTON (Dec. 17, 2014) — Whistleblower Amy Farrow will receive 20 percent of a $3.6 million fraud judgment entered today against a Pennsylvania-based military contractor and its owner, Kenneth Narzikul, who managed more than $30 million in federal contracts despite his 1993 conviction for paying kickbacks and hush money at a predecessor company.
The Employment Law Group® law firm represented Ms. Farrow in the civil case, which alleged that Mr. Narzikul demoted and harassed her after she uncovered his deceptive practices at NP Precision Inc., a maker of critical parts for iconic military vehicles including the Osprey tilt-rotor aircraft and the Chinook heavy-transport helicopter.
A Washington-based federal judge entered judgment against NP, based in Folcroft, Pa.; against Mr. Narzikul; and against his wife, Sandra Rosch Narzikul, who kept books for NP and was once its chief financial officer. The defendants agreed to the orders and did not dispute their liability.
Ms. Farrow, who lives near NP in the suburbs of Philadelphia, also cooperated in a federal criminal investigation of Mr. Narzikul. That probe led in August 2014 to Mr. Narzikul’s guilty plea on related charges. He is due to be sentenced in January in a federal court in Philadelphia, and faces up to 20 years in prison and up to $2.7 million in fines and restitution.
“Amy’s strong moral compass is directly responsible for bringing this criminal — a repeat offender against American taxpayers — to justice,” said David L. Scher, a principal of The Employment Law Group and lead attorney on the case. “Her testimony, and the evidence she courageously brought to light, were crucial to the government’s victory in both the criminal and civil cases.”
Ms. Farrow’s share of the $3.6 million civil judgment is her reward for filing a 2012 lawsuit that claimed — on behalf of U.S. taxpayers — that NP and the Narzikuls had misled and defrauded the U.S. military. The judgment affirms her claims that NP obfuscated its ownership to win contracts, and that the Narzikuls then systematically diverted government payments they should have sent to NP subcontractors, forging invoices and checks to hide their wrongdoing during an audit.
As a result of the NP fraud, many important military aircraft were completed late — or not at all.
Ms. Farrow blew the whistle on her former employer by filing a complaint under the federal False Claims Act. That statute, originally signed into law by President Abraham Lincoln in 1863, makes it illegal to deceive the federal government for financial gain.
The law includes a “qui tam” provision that allows whistleblowers to file suit on behalf of the government and — if they prevail — to receive a share of the proceeds. The statute also provides damages for any illegal punishment of whistleblowers, including firing or other workplace retaliation.
“Amy’s bravery in this case was immense,” said R. Scott Oswald, managing principal of The Employment Law Group. “She stood up for the right thing, despite intense pressure and punishment in the workplace. She has shown us that an individual employee truly can make a difference in a corrupt company: Because of Amy’s actions, U.S. service members and taxpayers are no longer being exploited by a convicted criminal.”
The complaint in United States ex rel. Farrow v. NP Precision, Inc. was filed in the United States District Court for the District of Columbia. The case docket number is 1:12-CV-00447.
