Alaska Companies, Whistleblower to End Sham Subsidiaries Case

Two Alaskan Native corporations and a whistleblower have reached a settlement in a false claims case alleging fraud under a contracts set-aside program.

Defendants Afognak Native Corp., Alutiiq LLC, and Ben Ferris told the U.S. District Court for the District of Alaska March 15 that they’ve reached a full settlement on the merits following mediation and negotiations.

They asked Judge H. Russel Holland to dismiss the case with prejudice.

Ferris accused the companies of enrolling subsidiaries in the Small Business Administration’s 8(a) program—which sets aside contracts for small businesses owned by socially and economically disadvantaged individuals—despite knowing they weren’t eligible. ...