Company Settles Whistleblower Case That Led to Former DOJ Lawyer's Jailing
Fortinet, a network security company, reached a deal worth $545,000 to settle a whistleblower lawsuit. Lawyers for the whistleblower say that former DOJ lawyer and Akin Gump partner Jeffrey Wertkin tried to sell the company a copy of the complaint while it was still under seal.
April 15, 2019 at 06:48 PM
4 minute read
Federal prosecutors on Friday announced a $545,000 False Claims Act settlement with Silicon Valley network security company Fortinet Inc.
The terms of the settlement are relatively routine: The Sunnyvale-based company agreed to pay $400,000 and to provide the U.S. Marine Corps with $145,000 in equipment to resolve False Claims Act allegations. The case's route to settlement, however, appears to have been anything but normal thanks to former DOJ lawyer and Akin Gump Strauss Hauer & Feld partner Jeffrey Wertkin.
Wertkin was sentenced to 30 months in prison last year after federal agents arrested him for reaching out to an in-house lawyer at a Silicon Valley company offering to sell a copy of an underseal qui tam complaint. Federal agents nabbed Wertkin in a Cupertino hotel lobby in January 2017 wearing a wig and sunglasses and posing as someone named “Dan” as he waited with a copy of the complaint. Wertkin had been expecting a $310,000 “consulting fee” from the company, which was cooperating with authorities.
The details of the qui tam suit against Fortinet line up with the complaint that Wertkin was hawking. The target company described in the criminal complaint against Wertkin is one that “provides technology security and is headquartered in Sunnyvale, California,” a description that fits Fortinet. According to court filings in Wertkin's case, the complaint he was attempting to sell was filed in January 2016 and was pending before U.S. Magistrate Judge Jacqueline Scott Corley. The suit that Fortinet settled, likewise, was originally filed in January 2016 and was pending before Corley.
Neither federal prosecutors, nor Fortinet, nor Wertkin's former criminal defense attorney would confirm that the case that Fortinet settled with the government was the one wrapped up in the Wertkin arrest. But lawyers at Sanford Heisler Sharp who represent the whistleblower in the case, former Fortinet employee Yuxin “Jay” Fang, say that it is.
“On the one hand, Fortinet engaged in a brazen and fraudulent scheme that included creating phony labels, but on the other hand, the company did the right thing when Wertkin offered to sell it sealed government documents,” said Vincent McKnight, Washington, D.C., managing partner in a prepared statement. “I am certain its cooperation influenced the amount of the final settlement agreement on the mislabeling charges.”
The press release from federal authorities announcing the deal Friday said that the settlement “reflects Fortinet's cooperation with the government in this and other matters.” A spokesman for the U.S. Attorney's Office for the Northern District of California, which handled both the Wertkin and Fortinet case, said that he could not say specifically on what matters Fortinet cooperated.
Fortinet's settlement stems from allegations that an employee inappropriately altered labels to obscure the fact that products made in China were ending up in government hands—an alleged violation of the Trade Agreements Act, which prohibits some government contractors from buying goods that aren't from or “substantially transformed” in the U.S. or other designated countries.
A spokesperson for Fortinet said that settlement was the result of an isolated incident involving a “rogue former employee.”
“When we were made aware of the incident, we took immediate action, including thoroughly investigating the matter, terminating the employee and implementing additional safeguards to prevent an issue like this from happening again,” said Fortinet's Sandra Wheatley in an email statement. “The nominal settlement amount of $545,000 reflects in part our cooperation to promptly and thoroughly address this matter.“
Wheatley did not respond to a follow-up question asking whether the company cooperated in Wertkin's case.
Wertkin pleaded guilty in late 2017 to two charges of obstruction of justice and one count of transporting stolen goods across state lines related to stealing and trying to sell sealed whistleblower complaints acquired while he was still a lawyer at the Justice Department. U.S. District Judge Maxine Chesney sentenced Wertkin to 30 months of prison time in March 2018. According to the Federal Bureau of Prison inmate locator, Wertkin is currently housed at the federal correctional institute in Talladega, Alabama, and is set for release Jan. 24, 2020.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllPa. Judicial Nominee Advances While Trump Demands GOP Unity Against Biden Picks
4 minute read'Radical Left Judges'?: Trump Demands GOP Unity Against Biden's Judicial Picks
4 minute readRead the Document: 'Google Must Divest Chrome,' DOJ Says, Proposing Remedies in Search Monopoly Case
3 minute readDemocrats Give Up Circuit Court Picks for Trial Judges in Reported Deal With GOP
Trending Stories
- 1Judge Grants Special Counsel's Motion, Dismisses Criminal Case Against Trump Without Prejudice
- 2GEICO, Travelers to Pay NY $11.3M for Cybersecurity Breaches
- 3'Professional Misconduct': Maryland Supreme Court Disbars 86-Year-Old Attorney
- 4Capital Markets Partners Expect IPO Resurgence During Trump Administration
- 5Chief Assistant District Attorney and Litigator Shortlisted for Paulding County Judgeship
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250