Department of Justice claim on CDI Corporation

CDI Corporation are being investigated by the US Department of Justice (DOJ) under US false claims act.

U.S. Department of Justice investigation into how the company charged for the time it spent on certain federal government contracts, according to a filing with the Securities and Exchange Commission.

The total value of the claim under the U.S. False Claims Act could equal $2 million, and the company faces the potential of treble damages as well as statutory penalties in a range of $1.7 million to $3.4 million US Dollars.

CDI Corporation have set aside $4.3 million Dollars pending the resolution of a U.S. Department of Justice investigation (DOJ).

CDI Corporation and DOJ Investigation Comment

Are CDI Corporation guilty of this claim? Well at the moment, we do not know as the investigation is ongoing. However, the fact that they have had to put aside £4.3 million Dollars shows that they are preparing to be found guilty.

Would I be surprised if they are found guilty of making false claims? Quite frankly no! Why, because the man at the top of this organisation, Mr Roger H Ballou, has a poor track record of ethical behaviour. For example:

  • Roger H Ballou has lied to and misled shareholders whilst on record at his quarterly financial reviews. Read his actual words and his bare faced lies to CDI Corporation shareholders.
  • Roger H Ballou has presided over years of misrepresentation of their wholly owned global recruitment franchise MRI Network.
  • Roger H Ballou has consistently refused to clarify how and when the write-off of a debt of £170,477:60 UK Pounds, approximately $316,626 US Dollars, was achieved and reported under Sarbanes Oxley rules. CDI Corp Sarbanes-Oxley questions
  • CDI AndersElite, a staffing subsidiary of CDI Corporation has already been found guilty of anti-competitive behaviour practices by the Office of Fair trading and has been fined 7.6 million UK Pounds, approximately $12.2 million US Dollars. AndersElite fined
  • Joseph R Seiders has misled Ohio courts on on oath. Read his words and compare against the facts. Joseph Seiders Misstatements

All of this and more questionable track record does not bode well or lead me to believe that they are likely to be found innocent. We wait for the outcome. What I wait for in particular is the response from Roger H Ballou. His track record, from my years of interaction with him, has led me to believe that he will do nothing. That is to say he will continue with his usual approach of 'head in the sand' and fail to address these underlying ethical and morale problems as he has done in the past. I hope that I am wrong - but we will see.

UPDATE CDI Corporation - Pay the United States $1.95 million in settlement. Read the statement by the US DOJ.