DAVID ANTON LAW OFFICE 17I7 Redwood Lan CA SEEKS 530~759v542l 9 Case Document 1 Filed 03/04/1?iylPage 1 of 26 DAVID ANTON (SBN 94852) 1717 Redwood Lane Davis, CA 95616 Telephone: (530) 759-8421 davidantonlawGngail.com Counsel for Qui Tam Relators Donald K. Wadsworth and Robert McLean SEALED EV COURT ORDER UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA THE UNITED STATES OF AMERICA ex rel. DONALD K. WADSWORTH and ROBERT MCLEAN Plaintiff and Qui Tam Relators in Interest, V. TETRA TECH EC, RADIOLOGICAL SURVEY as?? no? COMPLAINT FOR: FALSE CLAIMS ACT VIOLATION PURSUANT TO 31 U.S.C. ?3729 et seq., UNDER SEAL - 31 USC ?3730] REMEDIATION SERVICES, 10 Jury Trial Demanded ENVIRONMENTAL INFRASTRUCTURE INCORPORATED Defendants. PARTIES 1. Qui Tam Relator Donald K. Wadsworth (herein Wadsworth), is the President and CEO of New World Environmental, Incorporated (herein New World). Wadsworth is trained in and has college degrees pertaining to the testing and handling of radioactive materials. New World has been for years a company specializing the remediation of contaminated buildings and areas, including the contamination by 1. FCA Complaint US ex rel Wadsworth McLean Tetra Tech, Inc. et al. 28 DAVID ANTON LAW OFFICE 1717 Redwood Lane Davis. CA 95616 530459-8421 Case Document 1 Filed Page 2 of 26 radioactive wastes. New World has performed remediation services involving radioactive wastes for private, public and military clients. New World was initially engaged directly by the United States Navy in the late 1990 and early 2000?s to assist in the evaluation of Hunters Point Naval Shipyard for contaminants, including radioactive contamination. 2. In the early years of the 2000?s New World was requested by the United States Navy and Tetra Tech EC, Inc. to be a sub-contractor for Tetra Tech EC, Inc. for the remediation of Hunters Point Naval Shipyard for radiological surveys, screening, sampling, testing and remediation. New World invoked its Nuclear Regulatory Agency license and was responsible to the Nuclear Regulatory Agency for the radiological work and handling of radiological materials at Hunters Point while operating under New World?s license. 3. In or about 2007, Tetra Tech EC, Inc. obtained and invoked its own Nuclear Regulatory Agency license and became the responsible entity for the radiological work and handling of radiological materials at Hunters Point. New World continued to operate as a sub-contractor for Tetra Tech EC, Inc. at Hunters Point by providing Radiation Control Technicians (RCT), and a radiological laboratory and laboratory personnel. On or about 2009 New World no longer provided Radiation Control Technicians to Tetra Tech EC, Inc., for other sub- contractors, including Defendant Radiological Survey Remediation Services, LLC (herein RSRS) took over the function of supplying RCT personnel to Tetra Tech EC, Inc. On or about 2012, New World no longer provided the radiological laboratory to Tetra Tech EC, Inc. at Hunters Point. 4. New World was retained as a sub-contractor for Shaw Environmental and Infrastructure (Shaw) to perform surveys, scanning, testing, and remediation of radioactive materials at Treasure Island in the mid-2000?s until approximately 2009. New World was retained as a sub-contractor for Tetra Tech EC, Inc. to perform 2. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. 28 DAVID ANTON LAW OFFICE 17? Badwona Lane CA 95616 555555555555 Case Document 1 Filed Page 3 of 26 surveys, scanning, testing, and remediation of radioactive materials at the Alameda Naval Base also from the mid-2000?s until approximately 2009. 5. Relator Robert McLean (herein McLean) is an experienced and trained Radiation Control Technician. McLean was employed by New World for a short period of time in the mid-2000?s to work as an RCT at Hunters Point under the sub- contract with Tetra Tech EC, Inc. McLean was transferred to be the RCT Supervisor at Treasure Island when New World obtained the sub-contract with Shaw. McLean discovered extensive radioactive material on Treasure Island that the Navy had represented was not present on Treasure Island. Over the period of time of McLean?s employment by New World at Treasure Island, McLean was subjected to extensive radioactive exposure and his employment ceased due to the level of exposure McLean incurred. 6. Relators Wadsworth and McLean are original sources of the information herein provided as de?ned by 31 USC Section 373 Relators of not aware of the allegations or transactions which are material to this suit having been publically disclosed as de?ned by 31 USC Section 3730(e)(4)(A) prior to the ?ling of this action. Prior to the ?ling of this action, the Relators have voluntarily disclosed to the Government the information and that information is independent of the public disclosures and materially adds to any publicly disclosed allegations or transactions before ?ling this action under the False Claims Act. 7. Relators Wadsworth and McLean, with the assistance of counsel, have conducted investigations into the conduct of Tetra Tech EC, Inc., and others involved in the radiological remediation for the Navy in the California Bay Area. Relator Wadsworth had concerns on behalf of the company New World to determine why New World was shut off from further remediation work on the former Navy bases despite having worked on the radiological remediation at all three sites during the 2000?s. Relator McLean had concerns that he was terminated from employment with New World, and advised that he was ordered to be terminated at the direction of a 3. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. . Case 3:16-cv-0m7-JD Document 1 Filed 4 of 26 1 Navy RASO of?cial, and consulted with legal counsel. As a result of the inquiries by 2 the Relators, individually, jointly, and with the assistance of counsel, the Relators 3 have independent knowledge and information that has not been publically disclosed 4 that is material to false claims made by the Defendants against the United States of 5 America, and the United States Navy, as set forth herein. 6 7. Defendant Tetra Tech EC, Inc. is a corporation that has contracted with 7 the United States Navy and the United States government to perform clean-up and 8 remediation services of hazardous wastes, including radioactive materials, at the 9 closed Hunters Point Naval Shipyard in San Francisco, the Treasure Island Naval base 10 in San Francisco, and the Alameda Naval station in Alameda County, California. On 11 information and belief, it is alleged that the principal business of?ce of Tetra Tech 12 EC, is located in California. Defendant Tetra Tech EC, Inc. is a wholly owned 13 corporate subsidiary of Tetra Tech, Inc. Federal jurisdiction is based on this action 14 being brought under the Federal False Claims Act, 31 USC Section 3729 et seq. 15 8. Radiological Survey Remediation Services, LLC (herein RSRS) is a 16 limited liability corporation owned by Daryl DeLong and Brian Henderson. RSRS 17 was a newly formed corporation by DeLong and Henderson in approximately 2006, 18 and incorporated the company in Nevada. DeLong and Henderson had been 19 employees of New World providing services to Tetra Tech EC, Inc. and the United 20 States Navy at Hunters Point. After RSRS was created the company provided 21 technical workers and performed services related to the radiological remediation for 22 the United States Navy at Hunters Point, Treasure Island, and Alameda Naval station. 23 Many of the employees of RSRS were prior New World employees who were advised 2 4 would be without a job at Hunters Point when Tetra Tech EC, Inc. reduced the 25 staffing or eliminated the staf?ng by New World. RSRS provided these services 26 generally through sub-contracts with the prime contractors of the United States Navy, 27 including Tetra Tec EC, Inc., the Shaw Group, and Chicago Bridge and Iron, Inc. DAVID ANTON LAW OFFICE 1717 Redwood Lane Davis. CA 95516 4 530-759-8421 FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE 1717 Redwood Len Davis, CA 95616 530-758-8421 Case Document 1 Filed 03/04/% Page 5 of 26 9. Shaw Environmental and Infrastructure, which was a subsidiary of The Shaw Group, was a corporation that contracted with the United States Navy and the United States government to perform clean?up and remediation services of hazardous wastes, including radioactive materials, at the closed Hunters Point Naval Shipyard in San Francisco, the Treasure Island Naval base in San Francisco, and the Alameda Naval station in Alameda County, California. The Shaw Group was purchased by Chicago Bridge and Iron, Inc., and is a wholly owned subsidiary of Chicago Bridge and Iron, Inc. 10. Defendant 10 Environmental Infrastructure Incorporated (herein IOEI) is a sub-chapter corporation that was incorporated in 2006. Defendant IOEI has provided data management, radiological test result management, and technical writing to Tetra Tech EC, Inc. for Hunters Point, Treasure Island, and Alameda Naval Base. FALSE CLAIMS ACT FACTS AND CLAIMS UNDER $3729 (INA). (B). and (C) Hunters Point Naval Shipyard Conspiracy Between Tetra Tech EC, Inc. and Sub-contractors IOEI and RSRS To Generate False Radiological Records and Statements Material To False Claims Made To The avv 11. The prime contractor with the Navy for the remediation of Hunters Point Naval Shipyard as of 2006 was Tetra Tech EC, Inc. Tetra Tech EC, Inc. installed a new General Manager over the Hunters Point Naval Shipyard, William ?Bill? Dougherty (herein Dougherty) on or about 2006. Dougherty on behalf of Tetra Tech EC, Inc. engaged in a conspiracy with the principles of Radiological Survey Remediation Services LLC (herein RSRS), namely Brian Henderson and Daryl 5. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE I717 Redwood Lane Davis. CA 95616 EEO-759.8421 Case Document 1 Filed Page 6 of 26 Delong, and with Mike Bilodeau who formed in 2006 10 Environmental Infrastructure Incorporated (herein IOEI) to defraud the United States Navy and related agencies regarding the remediation services and accomplishments at Hunters Point in order to obtain unearned payments from the Navy. Under the remediation contracts with the Navy a change in the form of the contracts took place over the mid- to-late 2000?s. Early stage contracts for remediation services were for surveys to identify the location and characterization of potential radioactive wastes were billed and paid largely on a time and material cost nature. In the later-half of the 2000?s as the Navy contracts evolved and changed to focus on testing and remediation of radioactive wastes the contracts evolved to be more of a ?xed price nature to the contract and included progress and completion requirements of radiological remediation objectives to obtain scheduled payments under the contracts from the later 2000?s onward. 12. Tetra Tech EC, Inc. management, particularly Dougherty, Dennis McWade, and Andy Bolt, cultivated sub?contractor companies to supply specialized manpower in a way to cause the sub-contractor to be indebted and coopted by Tetra Tech EC, Inc. In 2006, Mike Bilodeau was a disabled veteran who was supplying drinking water to Hunters Point because standard utilities such a fresh water were not available to those working at Hunters Point. Mr. Bilodeau was approached by managers of Tetra Tech EC, Inc. including Dougherty. Dougherty offered to Mr. Bilodeau that if Mr. Bilodeau formed a Service-Disabled Veteran-Owned Small 6. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. Case Document 1 Filed Page 7 of 26 1 Business, and Bilodeau agreed to hire Mr. Dougherty?s wife Christine Dougherty, that Dougherty would see that Mr. Bilodeau?s company got the sub-contracted work from 4 Tetra Tech EC, Inc. of providing Christine Dougherty to perform technical writing for 5 submission of Tetra Tech EC, Inc. reports to the Navy and related governmental entities regarding the radiological remediation work at Hunters Point. Based on the 8 arrangement proposed by Dougherty, Mr. Bilodeau did hire Christine Dougherty in 9 approximately March of 2006, and incorporated IOEI in June of 2006, with Mr. Bilodeau taking the role of CEO of IOEI. Christine Dougherty was utilized in a 12 variety of roles, including data management and oversight, and assisting in the 13 technical writing of reports for Tetra Tech EC, Inc. to submit to the Navy to report 14 15 progress and ?nal results of radiological remediation services for speci?c areas on 16 Hunters Point. 17 13. In 2006, management of?cials of Tetra Tech EC, Inc., including 18 19 Dougherty, approached Daryl DeLong and Brian Henderson about forming a separate 20 company from New World to provide radiological support personnel and equipment 21 to Tetra Tech EC, Inc. at Hunters Point and potentially other locations. Dougherty 22 23 represented that he could and would take effective steps to channel sub-contract 24 radiological work to the new company if formed, if DeLong and Henderson would 25 cooperate with Tetra Tech EC, Inc. as needed to assure that Tetra Tech EC, Inc. made 26 27 pro?ts from the radiological work at Hunters Point and other locations they provided 28 sub-contractor services. DeLong and Henderson agreed to cooperate with Tetra Tech DAVID ANTON LAW OFFICE 1111 Redwood Lane Davis. CA 95616 7 530-159-342! FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE 1717 Redwood Lan Davis. CA 95616 530-759-8421 Case 3:16-cv-0m7-JD Document 1 Filed 8 of 26 EC, Inc. as needed and requested, formed RSRS, and provided to Tetra Tech EC, Inc. sub-contractor work by providing radiological support workers, RTCS, and radiological related equipment. 14. In the summer and fall of 2008, building 351A, which had been one of the buildings on Hunters Point in which the Naval Radiological Defense Laboratory worked for a number of years with radioactive materials, was being processed for radiological remediation. In the under ?oor foundation area of building 351A radiological material was surveyed and found to exist above release levels. Extensive efforts and expense were incurred to have staff of approximately two dozen laborers work in the low clearance areas to remove soil and material that were potentially radioactive above release levels. Signi?cant expense was incurred by Tetra Tech EC, Inc. to have a specialized soil vacuum truck assist the laborers in the removal of the soil ?'om the foundation crawl area of building 351A. Signi?cant expense was incurred by Tetra Tech EC, Inc. to have the removed soil evaluated, segregated, put in intermodal containers used for the removal of LLRW, and prepare the containers and material for review and approval from RASO and other government agencies to be delivered to LLRW approved facilities. 15. Following the extensive remediation efforts of the laborers to remove radiologically impacted soils from the foundation area of building 351A, Radiological Control Technicians were directed to take soil samples from the remaining soil foundation area of building 351A, and deliver the soil samples to the on-site 8. FCA Complaint US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE I717 Redwood Lane Davls. CA 95616 530-759-8?21 Case Document 1 Filed 03/04/19., Page 9 of 26 radiological laboratory at Hunters Point. The RCT workers did take the post- remediation soil samples per protocol, completed the proper chain of custody documents, and delivered the post?remediation soil samples to the on-site radiological laboratory. 16. Approximately two days following the delivery of the post-remediation soil samples to the on-site laboratory, an RSRS supervisor, Steve Rolfe, directed the two who had taken the post-remediation soil samples and told the RCTs that they were required to accompany him to a meeting at the headquarters of Tetra Tech EC, Inc. at Hunters Point. RSRS supervisor Rolfe took the two to the conference room at Tetra Tech EC, Inc. headquarters where Tetra Tech EC, Inc. General Manager Bill Dougherty along with other top Tetra Tech EC, Inc. managers were present, as was RSRS Vice President Daryl DeLong. In the meeting General Manager Dougherty explained that Tetra Tech EC, Inc. had spent a great deal of money on the remediation of building 351A. Dougherty stated that the post- remediation soil samples that the RCTs had taken and submitted to the on-site laboratory had been tested and the test results were that the soil samples had some of the highest radioactive readings that had ever been obtained at Hunters Point. Dougherty explained that the laboratory results of the soil samples for building 351A would be destroyed, and the soil samples would be gotten rid of so there was no record or trace of the post-remediation samples that the RCTs had obtained from building 351A. Dougherty directed in the meeting that the RCTs were to go back to 9. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. 28 DAVID ANTON LAW OFFICE 1711 Redwood ans Davis. CA 956': Case Document 1 Filed Page 10 of 26 building 351A after RSRS and IOEI worked together to plot where samples would be taken under building 351A to avoid any samples being taken of building 351A?s radioactive hot spots. RSRS and IOEI did further the conspiracy to defraud the Navy and United States Government by reviewing the scan and laboratory results, and plotting where scans and soil samples should be taken of the soil foundation area of building 351A to avoid radiological hot spots. The objective of Tetra Tech EC, Inc. management in giving the directive and the cooperative conspiracy of RSRS and IOEI was to take fraudulent steps so that the laboratory results and scans would support unrestricted radiological release of building 351A from Navy RASO and government agencies, and permit Tetra Tech EC, Inc. to bill and obtain payment from the United States based on the fraudulent records and designation of building 351A as meeting unrestricted radiological release standards. A short time after RSRS and IOEI plotted locations for building 351A?s foundation soil area for sampling, the RCTs were instructed that RSRS and IOEI had directed engineers as to the placement of location ?ags under building 351A which were the spots that the RCTs were to take soil samples from and from no other locations under building 351A. 17. The RCTs were aware of the areas under building 351A that had most likely resulted in the high radiological lab results because as part of the sampling process the RCTs were required to use survey instruments that measured for radioactivity. The RCTs noted that no location ?ags had been placed in the crawl area under building 351A that were near the spots that had registered the highest 10. FCA Complaint US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. Case Document 1 Filed 03/04/15, Page 11 of 26 1 radioactive readings the had obtained with their hand held radioactivity 2 sensors. 3 4 18. The destruction of the building 351A soil samples and laboratory results, 5 and the direction and plan to only take soil samples from areas known to be low in 6 radioactive content, and to intentionally avoid areas of known high radioactive content 7 8 was directly contrary to the contract with the Navy, the operating procedures set by 9 the Navy to be followed as part of the contract, and was intentionally fraudulent. 10 Management and staff of RSRS and IOEI actively participated and assisted in carrying 1 1 12 out the conspiracy with Tetra Tech EC, Inc. to submit false records to the Navy as to 13 the radiological status of building 351A that were material to the claim for payment by 14 15 Tetra Tech EC, Inc. to the Navy. RSRS and IOEI employees, including Daryl 16 DeLong of RSRS took steps to eliminate computer records of the soil samples that 17 had been taken, resulted in high radioactive readings, and had been discarded at the 1: direction of Dougherty as part of the efforts to defraud the United States. 20 19. In later 2009 early 2010, and again through July 26, 2010 Tetra Tech EC, 21 Inc. submitted records of soil samples of the foundation area of building 351A to the Navy?s Radiological Affairs Support Of?ce (RASO) for review and approval. The 24 records submitted were knowingly false and in violation of rules, procedures and 25 required processes. No disclosure was given that the soil samples were not taken in 26 27 compliance with requirements to sample both randomly and from the highest scan 28 reading area. Tetra Tech EC, Inc. did not disclose the ?rst post-remediation sample DAVID ANTON LAW OFFICE 1 11. 550059-8121 FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. . Case Document 1 Filed 03/04/176.? Page 12 of 26 1 test results that exceeded Release Levels and demonstrated that there remained Low Level Radiological Waste (LLRW) under building 351A. IOEI and RSRS worked in 4 conspiracy with Tetra Tech EC, Inc. in destroying record of the correctly obtained soil 5 samples that resulted in high radioactive readings above release levels, and worked in conspiracy together to produce one or more Final Status Surveys for building 351A 8 that contained known false records and statements, and failed to disclose the existence 9 of the soil samples that had tested well above release levels established by the Navy. 10 11 Managers and employees of IOEI and RSRS knew of the fraud involved in the 12 destruction of soil samples and laboratory results that had been taken and resulted in 13 high radioactive readings above release levels. Defendants actively participated in the 14 15 fraudulent plan to substitute the high radioactive samples and test results with samples 16 and test results that were taken in a manner contrary to the rules and regulations for 17 the taking of such samples. Navy RASO and other agencies provide comments and 18 19 asked for further information, but did not learn of the fraudulent sample processes. 20 Tetra Tech EC, Inc. submitted a ?Final, Final Status Survey Results for Building 21 351A, Hunters Point Shipyard, San Francisco, California dated July 26, 2010. On or 22 23 about October 6, 2010 Tetra Tech EC, Inc. received release for unrestricted use with 24 respect to radiological issues at Building 351A. Commensurate with the approval of 25 the fraudulent Final Status Survey for building 351A Tetra Tech EC, Inc. made a 26 27 demand for payment for the building 351A work. The fraudulent records and 28 statements were material to the false and fraudulent demand for payment. IOEI and DAVID ANTON LAW OFFICE ?17 Redwood Lana 12. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE I711 Redwood Lane Davis. CA 95616 530-759-il21 Case Document 1 Filed 03/04/15., Page 13 of 26 RSRS managers and employees involved in the conspiracy knew and understood that the fraudulent Final Status Report would be utilized to make a demand for payment by Tetra Tech EC, Inc. to the United States. 20. Following the fraud involved in building 351A in 2009 and the ?rst two- thirds of 2010, Tetra Tech EC, Inc. rewarded RSRS and IOEI and further bonded the three companies in the conspiracy to defraud the United States in various ways. Tetra Tech EC, Inc. directed greater portions of the radiological ?eld work to RSRS and away from New World Environmental, Inc. and Aleut World Solutions, two sub- contractors who had been supplying radiological ?eld work to Tetra Tech EC, Inc. at Hunters Point. Tetra Tech EC, Inc. began providing and increasing the work Tetra Tech EC, Inc. gave to RSRS at other military remediation projects where Tetra Tech EC, Inc. was the prime contractor with the United States, including but not limited to Alameda Naval Base and Treasure Island. Tetra Tech EC, Inc. rewarded IOEI for the assistance in the conspiracy to defraud the United States in the remediation at Hunters Point, and reinforced the conspiracy to defraud the United States by transferring employees of Tetra Tech EC, Inc. at Hunters Point to work for IOEI as employees of IOEI so that IOEI could bill for the employees? work and obtain the resulting overhead and pro?ts. Tetra Tech EC, Inc. also provided bene?ts to IOEI by expanded the scope of services for IOEI to provide at Hunters Point that required the addition of staff and equipment by IOEI that IOEI billed for and obtain pro?ts from, including the 13. CA Complaint US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. LIILUJN DAVID ANTON LAW OFFICE I'll? Redwood Lan CA 95616 530-759-5421 Case Document 1 Filed 14 of 26 addition of data management individuals, technical writers, an archeologist, and laboratory assistance. 21. In 2010, Tetra Tech EC, Inc., RSRS and IOEI furthered the conspiracy to create false records and documents to support false claims for payment to the United States. A fundamental function in the radiological surveys and remediation at Hunters Point was the scanning of buildings, trenches and areas to detect radiation. The contracts and terms of the contracts Tetra Tech EC, Inc. had with the Navy set forth very detailed and speci?c directives as to the manner in which radiological scans were to be taken. Further, the Navy in cooperation with other government agencies including California and San Francisco government agencies jointly established scan result levels that would trigger further investigation for radiological materials and potential need for radiological remediation of the radioactive sources. The conspiracy by the three Defendants included an agreement that areas of Hunters Point would be scanned, and reported, in a fraudulent manner so that the agreed upon areas would have end scan results that were reported to the Navy and regulators as readings below that which would have required further investigatory work and would allow for free radiological release for the building, soil, trench, or area. 22. As part of the conspiracy to create false scan records and resulting reports, Tetra Tech EC, Inc. directed its ?eld supervisors to falsify radiological scan results taken in the ?eld, and to engage RSRS employees in assisting in the falsi?cation of the radiological scan data. Tetra Tech EC, Inc. ?eld supervisors, l4. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE I717 Redwood Len Davis. CA 95616 530-759-8421 9 Case Document 1 Filed 03/04/1ngage 15 of 26 including Justin Hubbard and Steve Rolfe, reviewed the scan information obtained by instruments by downloading the scan data from the ?eld testing instruments. The Tetra Tech EC, Inc. supervisors reviewed the ?eld scan results in the connex located in the designated areas being worked at Hunters Point. The connex structures were portable steel single rooms with a door and no windows. Material could be stored in a connex and employees could do work in the connex with computers and paperwork. In the connex the supervisors reviewed the scan information on a computer. The Tetra Tech EC, Inc. ?eld supervisors themselves manually altered the ?eld scan results so that some of the data results falsely represented that the scans had not detected radiological intensity levels that would warrant further study and remediation. The fraudulent change of this information enhanced the speed and lessened the costs to Tetra Tech EC, Inc. in obtaining regulatory clearance of the area and in obtaining payments from the United States. The Tetra Tech EC, Inc. ?eld supervisors also directed RSRS employees to review the ?eld instrument scan data on the computer in the connex and had RSRS employees, including but not limited to Jeff Rolfe, Tina Rolfe, Kathi Rolfe, Rick Zahinski, Joe Cunningham, Marie Winder, Jane Taylor, Blake Willett, and Anthony Smith among others. When scan data for areas that Tetra Tech EC, Inc. management wanted to obtain clearance had ?eld scan data readings that were too high for clearance to be obtained, the RSRS employees were directed to change the ?eld scan data results on the computer. Once the ?eld scan data was changed on the computer in the ?eld connex, the data was then transferred 15. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. Case Document 1 Filed Page 16 of 26 1 onto the main computer systems at Hunters Point to avoid records of the changed data appearing on the main computer system. The false records of ?eld scan data were 4 knowingly false, and were material to claims submitted by Tetra Tech EC, Inc. to the 5 United States for payment. The falsi?cation of scan data continued on a regular and frequent basis through at least the end of September 2012, and on information and 3 belief it is alleged that the fraudulent changing of scan data continued thereafter. 9 23. Tetra Tech EC, Inc., RSRS and IOEI furthered the conspiracy to defraud the United States in regards to the radiological scanning that was required to be 12 performed at Hunters Point. For areas that had been trenched, open areas and 13 buildings that Tetra Tech EC, Inc. wished to have deemed free of radiological 14 15 contamination above release levels, be it initially for buildings or open areas, or after 16 radiological remediation work had been performed for trenches, open areas, or 17 buildings, the Defendants in conspiracy took additional steps to obtain fraudulent scan 18 19 data to support unrestricted release in addition to changing the scan results obtained. 20 IOEI employees reviewed data obtained from prior surveys and characterization work 21 that provided guidance as to where radioactive material likely was that would be 22 23 above unrestricted release levels. IOEI employees worked with Tetra Tech EC, Inc. 24 supervisors, including Justin Hubbard and Jeff Rolfe, and with Daryl DeLong of 25 RSRS to identify the areas of concern for potential high radiological readings that 26 27 could thwart Tetra Tech EC, Inc. obtaining unrestricted release for a trench, an area or 28 building. The Tetra Tech EC, Inc. supervisors directed RSRS staff in the ?eld DAVID ANTON LAW OFFICE I717 Redwood Lane Davis. CA 95616 16, FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE I717 Redwood La Davis, CA 95616 530-759 -6421 Case Document 1 Filed 03/04/15., Page 17 of 26 performing the hand scanning of the areas of concern for potentially high radiological readings and directed the RSRS ?eld RCT to improperly scan by scanning at speeds that exceeded Standard Operating Procedures set into the contract and agreements for such scanning. By scanning at speeds that exceeded the scanning speed protocols established by the Navy in consultation with other government agencies involved with Hunters Point, the radiological seaming instruments were dramatically less sensitive and less able to register and record the radioactive levels actually present that could have been detected by scanning at the prescribed scanning speed. Defendants knowingly violating the seaming speed requirements set forth by the Navy from 2010 through no less than the end of September 2012, and Relators allege that the scanning speed violations as a result of the conspiracy of Defendants continued thereafter. 24. Tetra Tech EC, Inc., RSRS, and IOEI furthered the conspiracy to submit false records and reports to the United States Navy to obtain payment for the completion of work resulting in unrestricted radiological free release of soil extracted from Hunters Point. The conspiracy included the agreed upon objective of identifying soils that were to be evaluated for radiological contamination that did not have such high levels of other contaminants so that the soil could be used a back?ll at Hunters Point. The costs to Tetra Tech EC, Inc. would be decreased if the amount of soil that was dug up from Hunters Point could receive approval for free radiological release and be used as back?ll at Hunters Point rather than remediating the soil for radiological waste, or be deemed unable to be fully remediated and the soil pad be 1 7. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE 1717 aeawoou Lane 530-759-5421 Case Document 1 Filed 03/04/1%Page 18 of 26 required to be processed and disposed of as LLRW. By targeting the soils that did not have other contaminants that would preclude use as back?ll, the soils when falsely cleared as free of radioactive contaminants above release levels could be back?lled at Hunters Point avoiding signi?cant costs and completion time for Tetra Tech EC, Inc, and increasing the company?s pro?ts by fraud. Soil that obtained radiological free release approval from the Navy did not have to be scanned and cleared by the Hunters Point portal monitor screening, increasing the potential of avoiding detection of the radiological waste above release levels that remained in the soil due to the fraud. 25. In furtherance of the conspiracy, IOEI reviewed data related to the soils that were staged to be processed at the Radiological Screening Yards (RSY) which were approximately 1000 square meters each. IOEI identi?ed the soils that could be cleared for use at Hunters Point for back?ll. These soils were placed on the RSY pads, spread out, and scanned for radiological material using either hand held equipment or a towed array of sensors. If from the initial scan obvious radiological contamination was identi?ed, then that soil or portions of the soil were to be removed and placed in LLRW containers. A towed array scan was taken again after the removal of identi?ed LLRW and the resulting scan information was delivered electronically to IOEI employees. A map of the RSY pad was created by the IOEI employees from the scanning information for the pad of soil that contained indications at to where higher readings of radioactivity in the soil were located. IOEI employees conferred with RSRS employees and identi?ed where the highest radioactive readings 18. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. 28 DAVID ANTON LAW OFFICE 1717 Redwood Lan Davis, CA 95616 530-759-3421 Case Document 1 Filed 03/049,; Page 19 of 26 on the pad were, and identi?ed the pad as one that was able to be back?lled at Hunters Point. IOEI employees provided this information so that the RSRS RCTs working with laborers did not scan and take samples ?om the highest radioactive readings from the towed array scan and mapping contrary to the contract and terms of the agreement with the United States Navy. Rather, as part of the conspiracy to cut cost and increase pro?ts for Tetra Tech EC, Inc., and to obtain greater work and pro?ts for RSRS and IOEI, scanning and soil samples were taken from points on the RSY soil pad that were not of the highest radiological readings. The scanning and taking of samples was required by the Navy contracts and the directives related to the contracts so that the samples were to be taken from the 18 radioactive readings for each unit or soil pad. The intentional identi?cation of the highest radioactive towed array scan results by IOEI in order to avoid taking hand scans and soil samples from the highest radioactive reading spots was directly contrary to the contracts and related requirements, was false, fraudulent, and created false records that were material to the determination by the Navy RASO to approve of the soil being back?lled at Hunters Point. The false records created were material to the demand by Tetra Tech EC, Inc. for payment from the Navy. The conspiracy and conduct of Defendants in fraudulently identifying the highest radioactive readings and then using that information to avoid scanning and sampling from the high radioactive reading areas on the RSY soil pads took place beginning at least by mid-2010 and continued through 2012, and is alleged to have continued thereafter. 19. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. Case Document 1 Filed Page 20 of 26 1 26. In furtherance of the conspiracy to create and submit false records so that 2 Tetra Tech EC, Inc. could obtain free radiological release of buildings and soils at 3 4 Hunters Point RSRS and Tetra Tech EC, Inc. engaged in manipulation of the samples 5 that were submitted for radiological testing both at the on-site laboratory and those that were submitted to the third party laboratory selected by the Navy. In addition to 8 the fraudulent manipulation of soil samples reference supra, RSRS Vice President 9 Daryl DeLong engaged in fraudulent activities to assure that soil samples delivered to if the third party laboratory were not random samples, but were carefully reviewed by 12 DeLong as an effort to lessen the potential that the third party laboratory results would 13 result in above radiological release level laboratory results. DeLong took steps to 14 15 obtain the on-site lab results prior to sending samples to the third party lab, and 16 DeLong blocked delivery to the third party lab if be determined from the lab result or 17 any other information that it was a likely that an above release level would result. 1 8 19 Among the efforts by DeLong, he took active efforts to see that fully fraudulent soil 20 samples obtained from areas other than as represented on the chain of custody 21 documentation were delivered to the third party laboratory when ?nal clearances were 22 23 to be sought by Tetra Tech EC, Inc. DeLong was aware that employees of RSRS 24 were collecting false samples of material and soils and submitting such false samples 25 to the laboratory, and DeLong worked with RSRS supervisors to assure that the false 26 27 samples would result in laboratory results below release levels. DeLong worked with 28 employees of IOEI to review the history of initial scans of Hunters Point, and DAVID ANTON LAW OFFICE 530.759?8?21 20' FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE 1717 Redwood Lan CA 956% 530-759-8421 Case Document 1 Filed 21 of 26 subsequent scanning for radiological wastes to identify areas on Hunters Point that soil could be obtained that were reasonably sure would have below release levels of radioactivity. DeLong worked with the RSRS supervisors to provide information as to potential areas to obtain soil from to use for fake sample to be submitted to the laboratory. DeLong tracked the submission of the faked soil samples to the on?site lab and to the outside lab, and took efforts to assure that the fake samples were those that went to the outside lab when they were available and being used to obtain ?nal status survey free radiological release. DeLong also took efforts to oversee the strontium 90 samples sent to outside laboratories were carefully reviewed when Tetra Tech EC, Inc. wanted the soil or area at that time to be able to be cleared for free radiological release, and see that properly obtained samples that were likely to trigger strontium 90 radioactivity concerns that would result in extensive work were not sent to the outside laboratory contrary to the contract and procedures established by the Navy. 27. Tetra Tech EC, Inc. and RSRS furthered the conspiracy to submit false records and commit fraud against the United States pertaining to the remediation at Hunters Point. Soils extracted from Hunters Point that contained contamination other and in addition to radiological wastes was not to be back?lled at Hunters Point under the contracts with the Navy. These extracted soils had to be processed at the RSY screening yards, given free radiological release status by Tetra Tech EC, Inc., with that status approved by the Navy after review of records, and then cleared through the portal monitor of radiological sensors before the truckload of soil was released from 21. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. ., .. Case Document 1 Filed 03/0405, Page 22 of 26 1 Hunters Point and allowed to be disposed of at a Class II landfill. If the truckload of soil failed the portal monitor screening and also failed a post-portal monitor screening 4 conducted by an RCT, then the soil had to be re-processed at the RSY pads or 5 disposed of as LLRW, both at signi?cant additional cost and time to Tetra Tech, EC. 28. Tetra Tech EC, Inc. management, including Dougherty and Dennis 8 McWade, and management of RSRS, including Daryl DeLong and Brian Henderson, 9 in an effort to obtain free radiological release of soils to be shipped off Hunters Point 10 11 and reduce costs and time for Tetra Tech EC, Inc. under the contracts with the Navy 12 reached an agreement that employees of RSRS would be assigned to scan truckloads 13 of soil that failed the portal monitor screening. These Defendants agreed that RCT 14 15 employees of RSRS would hand scan the truckload of soil that failed the portal 16 monitor and conduct the scan at scanning speeds greater than set in directives from the 17 Navy and at greater scanning distances from the truck bed to decease the potential of 1 8 19 the radiological seaming instrument detecting radiation at an intensity above release 20 levels. From no later than the fall of 2010, RSRS employees assigned to perform the 21 hand instrument scan of truckloads of soil that failed the portal monitor followed the 22 23 directions of the conspiracy and scanned the truck beds at a faster rate than set by the 24 Navy required standards, and scanned the truck bed at a distance greater than set by 25 the Navy and established SOP. As a result of the RSRS employees that performed the 26 27 hand scan of trucks that failed the portal monitor from September 2010 on, very few 28 trucks were scanned in a manner that could detect radiological emissions with the DAVID ANTON LAW OFFICE 1717 Redwood Lane Davis. CA 95815 22, FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE 1717 Redwood Lane Dana. CA 95616 530.759?6421 Case Document 1 Filed Page 23 of 26 sensitivity that the Navy required under the contract and the SOPs that were incorporated into the contract. Defendants certi?ed and impliedly certi?ed that the testing and scanning of the truckloads of soil that left Hunters Point had been scanned and tested according to standards, which was knowingly false. The false records were incorporated into reports and Final Status Reports to the Navy that were material to the demand for payment by Tetra Tech EC, Inc. to the Navy. Alameda Naval Base Conspiracy Between Tetra Tech EC, Inc. and Sub- contractors RSRS Creating False Claims Pertaining to Radiological Remediation 29. Tetra Tech EC, Inc. and RSRS engaged in a conspiracy and concerted action to submit false records to the Navy and the United States related to the radiological remediation at the Alameda Naval Base. RCTs performed scanning for radioactive materials at the Alameda Naval Base. Tetra Tech EC, Inc. took efforts, and enlisted the assistance of RSRS, in avoiding the reporting of new spots in areas of units were the HRA conducted by the Navy indicated radionuclides of concern. As part of the effort to avoid the reporting of new spots of radionuclides that would require scanning, testing, expensive remediation and delay for Tetra Tech EC, Inc. employees of RSRS took steps to eliminate the presence of radionuclides contrary to the contracts with the Navy and the requirements set forth by the Navy as part of the contracts. For example, RCT technicians scanned and found high levels of 23. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DJ \10DAVID ANTON LAW OFFICE 1717 Redwood Lane CA 95616 530-759-8421 Case Document 1 Filed 0304/1ng Page 24 of 26 radionuclides in storm drains and similar areas that had not been previously identi?ed as having radionuclides present. Upon RCT reporting of the ?ndings RSRS staff, with the knowledge of Tetra Tech EC, Inc. management and supervisors, high pressure hosed the area until the radionuclides had been dislodged and swept away, potentially into the San Francisco Bay. The contracts and requirements between the Navy and Tetra Tech EC, Inc. preclude conduct that would result in radionuclides being disposed of in San Francisco Bay. The contracts and requirements between the Navy and Tetra Tech EC, Inc. provide strict structure and procedures as to how to respond to and handle scan information of radionuclides of concern that could exceed release levels. The reports and requests for payment by Tetra Tech EC, Inc. certify and impliedly certify that the information provided was correct, including disclosures of conduct that did not comply with the requirements of the contract. Tetra Tech EC, Inc. and RSRS, a sub-contract agent of Tetra Tech EC, Inc., knowingly violated the terms of the contract, and fraudulently reported that the processes followed at Alameda Naval Base were strictly followed, and submitted reports as to the work in the field and intentionally withheld information that Tetra Tech EC, Inc. and RSRS violated the terms and conditions of the contracts, such as high pressure hosing areas to dislodge radioactive material into additional areas and the Bay. 30. The United States of America has been damages by the false claims submitted by Defendants. The United States of America contracted with Defendant Tetra Tech EC, Inc. for the remediation and removal of radioactive materials above a 24. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. DAVID ANTON LAW OFFICE I717 Redwood Lan Davis. CA 95616 Case Document 1 Filed Page 25 of 26 speci?ed level for the health and safety of the environment, the public, and future generations. The fraudulent actions herein alleged deprives the United States of America with the basic service that was contracted for with Defendant Tetra Tech EC, Inc. The fraudulent conduct alleged related to radiological contamination creates unlimited future liability for the United State of America for the agreements between the United States of America and the City and County of San Francisco and government entities in Alameda County provide that the United States will remain responsible and liable for the radioactive remediation of Hunters Point, Treasure Island, and the Alameda Naval Base after the property is deeded over to local government agencies should it be discovered that the remediation did not fully and properly remove radioactivity. The Navy will and has incurred costs and expenses in the remediation of Hunters Point and Treasure Island that should not have been incurred, but for the fraud of Defendants. The full and extensive costs directly related to the fraud accomplished by Defendants are extensive and as of yet not fully known, and will be established and reasonably estimated at trial. 31. Each false record and resulting false report to the Navy in support of a claim for payment is a false claim under 31 USC Section 3729(a) for which a civil penalty is required, and three times the amount of damages that the United States has and will sustain because of the acts of Defendants in submitting false claims. 25. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et a1. 28 DAVID ANTON LAW Hadwood Lana Davts, CA 956l6 530-759-8421 Case Document 1 Filed Page 26 of 26 PRAYER FOR RELIEF 32. Relators, on behalf of the United States of America and the United States Navy seek through this action 3 times the damages the government has and will sustain because of the acts of defendants; 33. Relators, on behalf of the United States of America and the United States Navy seek through this action a civil penalty as provide by 31 USC Section 3729(a)(1)(G) for each false claim and each false record or false statement material to a false claim; 34. For an award to the qui tam plaintiff as provided for by 31 USC Section 37 30(d); 35. For an award of reasonable attorney fees and costs. A jury trial is demanded. Dated: March 3, 2016 La\ ?ce of David .nton By: Va; David C. Anton 26. FCA Complaint - US ex rel Wadsworth McLean Tetra Tech, Inc. et al. Case 3:16-cv-01107-JD Document 1-1 Filed 03/04/16 Page 1 of 1 CIVIL COVER SHEET The 18 44 civil cover sheet and the information contained herein neither replace nor supplement the ?ling and service ofpleadings or other papers as required by law, except as proWdEd by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE ON NEXT PAGE OF THIS FORM) 11. PLAINTIFFS DEFENDANTS . . The United States of America ex rel. Donald K. Wadsworth and Robert Tetra Tech EC, Radiological Survey Remediation Servrces, McLean IO Environmental infrastructure Incorporated .IS 44 (Rev. 12/12) cand rev (1/15/13) County of Residence of First Listed Defendant San Diego County (IN US. PLAINTIFF CASES ONLY) IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. County of Residence of First Listed Plaintiff Alameda County (EXCEPT IN US. PIAIIVTIFF CASES) NOTE: ((32j attorneys (Firm Name. Addreics. and Telephone Numng A LED Davi . Anton, Law Of?ce 0 Davi 1717 Redwood Lane, Davis, CA 95% COURT 0RD 530-759-8421 Attorneys (IfKnown) II. BASIS OF JURISDICTION (Place an in One Box Only) 111. CITIZENSHIP 0F PRINCIPAL PARTIES (Place an in One Barfor Plaintiff (For Diversity Cases Only) and One Baijr Defendant) 1 US. Government 3 Federal Question DEF PTF DEF Plaintiff (US. Government Not a Party) Citizen of This State 1 Incorporated or Principal Place 4 4 ofBusiness In This State 2 US. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5 Defendant (Indicate Citizenship of'Parties In Item 11]) of Business In Another State Citizen or Subject ofa 3 3 Foreign Nation 6 6 Foreign Country IV NATURE OF SUIT (Fla 1 in One Box Only) CONTRACT: FORFEITUREIPENALTY BANKROTHER STATUTES 1 10 Insurance PERSONAL INJURY PERSONAL INJURY 625 Drug Related Seizure 422 Appeal 28 USC 158 375 False Claims Act 120 Marine 310 Airplane 365 Personal Injury - of Property 21 USC 881 423 Withdrawal 400 State Reapportionment 130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 157 410 Antitrust 140 Negotiable Instrument Liability 367 Health Care/ 3 430 Banks and Banking 150 Recovery of Overpayment 320 Assault, Libel Pharmaceutical :3 . - .. 450 Commerce Enforcement of Judgment Slander Personal Injury 820 Copyrights 460 Deportation 151 Medicare Act 330 Federal Employers? Product Liability 830 Patent 470 Racketeer Influenced and 152 Recovery ofDefaulted Liability 363 Asbestos Personal 840 Trademark Corrupt Organizations Student Loans 340 Marine Injury Product 480 Consumer Credit (Excludes Veterans) 345 Marine Product Liability 3-?3 - - LABOR I SOCIAL SECURITY - .- 490 Cable/Sat TV [53 Recovery ovaerpayment Liability PERSONAL PROPERTY 710 Fair Labor Standards 861 HIA (1395?) 850 Securities/Cormnodities/ of Veteran's Bene?ts 350 Motor Vehicle 370 Other Fraud Act 862 Black Lung (923) Exchange 160 Stockholders? Suits 355 Motor Vehicle 371 Truth in Lending 720 Labor/Management 863 (405(g)) 890 Other Statutory Actions 190 Other Contract Product Liability 380 Other Personal Relations 864 SSID Title XVI 891 Agricultural Acts 195 Contract Product Liability 360 Other Personal Property Damage 740 Railway Labor Act 865 RSI (405(g)) 893 Enviromnental Matters 196 Franchise Injury 385 Property Damage 751 Family and Medical 895 Freedom of lnfomtation 362 Personal Injury - Product Liability Leave Act Act Medical Malpractice 790 Other Labor Litigation 896 Arbitration :2 antenapnopnnm: .- enactments -. . El 791 Employee Retirement TAX SUIT-S . -. 399 Administrative Procedure 210 Land Condemnation 440 Other Civil Rights Habeas Corpus: Income Security Act 870 Taxes (US. Plaintiff Act/Review or Appeal of 220 Foreclosure 441 Voting 463 Alien Detainee or Defendant) Agency Decision 230 Rent Lease Ejectrnent 442 Employment 510 Motions to Vacate 871 IRS?Third Party 950 Constitutionality of 240 Torts to Land 443 Housing/ Sentence 26 USC 7609 State Statutes 245 Tort Product Liability Accommodations 530 General 290 All Other Real Property 445 Amer. waisabilities - 535 Death Penalty WGMTION . Employment Other: 462 Naturalization Application ?Fi 446 Amer. waisabilities - 540 Mandamus Other 465 Other Immigration Other 550 Civil Rights Actions . 448 Education 555 Prison Condition 560 Civil Detainee - \Zk Conditions of Con?nement V. ORIGIN (Place an in ()ne Box Only) I 1 Original 2 Removed from 3 Remanded from 4 Reinstated or 5 Transferred from 6 Muitidistrict Proceeding State Court Appellate Court Reopened Another District Litigation (519901739 Cite the US. Civil Statute under which you are ?ling (Do not cite jurisdictional statutes unless diversity): 31 USC 3729 et seq. Brief description of cause: False Claims Act cause of action related to contracts with the United States 1: CHECK IF THIS IS A CLASS ACTION DEMAND CHECK YES only if demanded in complaint: 4? Wk VI. CAUSE OF ACTION VII. REQUESTED IN COMPLAINT: UNDER RULE 23. JURY DEMAND: Yes No RELATED . . IF ANY (bee JUDGE ames Donato DOCKET NUMBER 13-3835 JD DATE 3 NA rig/tr CORD 03/03/2016 W222 1 IX. DIVISIONAL ASSIGNMENT (Civil L.R. S-F I SAN EISAN JOSE EUREKA (Place an in One Box Only)