Leo Burnett Ad Agency Hit with $15.5M Fraud Settlement in Army Contract Scam

Chicago-based advertising giant Leo Burnett Company has been ordered to cough up a staggering $15.5 million as part of a massive fraud settlement with the federal government over allegations of improper billing and false claims against the U.S. Army.

The firm, which held an Army contract from 2000 to 2005 for its military service’s recruiting mission, is accused of improperly billing the Army during development of the ‘Army of One’ multimedia advertising campaign and the creation of a specialized recruiting website.

Federal prosecutors claim that Leo Burnett’s cash payment of $12.1 million and the additional $3.4 million in credited work for services not billed constitutes full resolution of the allegations. The settlement also includes a share of the recovery for former employees Greg Hamilton and Michele Casey, who received $2.790 million as their portion of the case.

Assistant Attorney General Gregory G. Katsas emphasized the feds’ commitment to pursuing those who defraud military contracts, stating that the feds will not tolerate such deception when it comes to taxpayers’ dollars. The former Leo Burnett employees who brought the lawsuit on behalf of the U.S. government were instrumental in uncovering the fraud.

The investigation into this scam was a collaborative effort by multiple agencies, including the Defense Criminal Investigative Service, the Inspector General for the Department of Defense, and the U.S. Army Criminal Investigation Command. The prosecution is part of a broader National Procurement Fraud Initiative aimed at protecting government contracts and ensuring integrity in the procurement process.

Sharon Woods, director of the Defense Criminal Investigative Service, reminded us that the feds are determined to crack down on anyone who tries to swindle the Department of Defense and American taxpayers. The command of General Rodney Johnson echoed this sentiment, emphasizing the U.S. Army Criminal Investigation Command’s role in safeguarding public trust.

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