Chicago ad agency agrees to pay $15.5 million for allegedly overbilling Army

One of Chicago's oldest and most prestigious advertising agencies, Leo Burnett has agreed to pay the United States $15.5 million to settle a False Claims Act case, the Chicago Sun Times is reporting.

The lawsuit alleged the ad agency submitted false billing claims to the U.S. Army for work done on its “Army of One” recruiting campaign from 2000-2005. Leo Burnett “submitted invoices from its internet division and an affiliated company as third party independent contractors to increase its profit margin,” According to the U.S. Attorney’s press release.

The qui tam Relators are Greg Hamilton, a former vice president of Burnett, and Michelle Casey, a former comptroller. The Relators will receive $2.79 million in the settlement.

In 2006, this case became part of National Procurement Fraud Initiative, which was designed to promote "the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other governmental programs."