Jacob Korenblum Faces $100,000 Fraud Charges
Who is Jacob Korenblum?
Jacob Korenblum, a graduate in international relations from the University of Toronto, pursued his master’s degree in international education policy at Harvard University. During his time at Harvard, he successfully completed a Reynolds Foundation Fellowship in social entrepreneurship.
Expanding his knowledge, Jacob Korenblum continued his education at the Arabic Language Institute of Fes, Morocco, focusing on contemporary standard Arabic. Additionally, he holds certification as a Lean Six Sigma White Belt.
Jacob Korenblum started his professional journey as the director of monitoring, evaluation, and communications at Education Development Center, Inc. Following that, he led the evaluation team at Oxfam International for several years. From 2017 to 2018, he provided counsel on the adoption of digital services, goods, and marketing strategies to Pearson Education and UNESCO, extending their reach into new territories.
Transitioning to the role of a strategic advisor, Korenblum joined the GSMA in 2018, an organization dedicated to the international mobile telecom sector. In this capacity, he guides international mobile network operators on forming multinational strategic and marketing alliances.
What is the false claims act and how does it relate to souktel
The False Claims Act, a federal statute, holds individuals accountable for knowingly submitting false claims to the government. According to the Act, anyone found guilty of making or using false records to secure government approval faces liability for three times the government’s damages, along with a penalty.
Moreover, the Act permits private citizens to initiate suits on behalf of the government, known as “qui tam” suits. In response to False Claims Act allegations, Jacob Korenblum, the former CEO of Souktel, Inc., has agreed to a $100,000 settlement.
U.S. Attorney Graves highlights the necessity for businesses engaging with the federal government to establish robust procedures, ensuring accurate billing for performed work and preventing overbilling. This case underscores our commitment to partnering with USAID and collaborators to ensure accountability, safeguard public funds, and hold wrongdoers accountable. Businesses proactively addressing their misconduct, disclosing it, and aiding government investigations stand in a more favorable position than those failing to do so.
Special Agent in Charge Freeman from USAID OIG stresses the importance for organizations funded by USAID to ensure that submitted invoices precisely reflect the actual work completed on a project. USAID OIG remains dedicated to working closely with the Department of Justice, utilizing its extensive investigative capabilities to penalize individuals jeopardizing the integrity of crucial U.S. aid initiatives.
Souktel, a Delaware-based digital consultancy company with offices in Toronto, Canada, Washington, D.C., and Ramallah, the West Bank, faced repercussions in 2021. Initially supported by USAID for designing mobile software connecting relief workers and recipients in developing nations, Souktel admitted in 2019 to overbilling USAID prime implementers on various projects. Under the leadership of CEO Jacob Korenblum, the company, between February 2014 and January 2017, submitted at least 55 fraudulent billing entries, including fictitious labor hours.
The U.S. Attorney’s Office and USAID OIG revealed that Souktel, despite being under cost-reimbursement awards, provided false timesheets to five prime awardees to support speculative labor hours. Prior to establishing responsibility in a civil case, Korenblum chose to settle and cooperated with the investigation. As part of the settlement, he agreed to pay an additional $100,000 on top of the $90,000 Souktel had already reimbursed USAID following its self-disclosure.
This incident was investigated by the USAID OIG and Assistant U.S. Attorney John C. Truong from the Civil Division of the U.S. Attorney’s Office for the District of Columbia.
What are the penalties for violating the false claims act
The False Claims Act enforces civil penalties for each breach of the law. In 2022, these penalties vary from $12,537 to $25,076 per violation, forming a substantial part of the overall recovery. The Act holds individuals accountable for three times the government’s damages plus an extra penalty if they knowingly submit false claims.
Moreover, making false claims may lead to fines equal to three times the losses incurred by the programs, in addition to $11,000 for each filed claim.
