A recent federal court decision in Maryland underscores the importance of whistleblower protections and highlights the potential scale of fraud in government contracting. In Sovitsky v. SOC LLC, a federal judge ruled that whistleblower Paul Sovitsky, a former Training Manager for SOC LLC, can move forward with his False Claims Act lawsuit alleging systematic fraud tied to U.S. Embassy security contracts in Baghdad.
SOC LLC is a private government contractor hired under the State Department’s Worldwide Protective Services (WPS I and II) contracts to provide security guards for U.S. diplomatic facilities in Iraq. These contracts required every guard to pass strict qualifications, including:
Only guards who passed all requirements could legally be billed to the government.
Sovitsky’s complaint outlines a multi-year scheme to keep unqualified guards on the payroll and misrepresent compliance to the U.S. government. Key allegations include:
The contracts at issue were worth millions of dollars, and Sovitsky alleges that dozens—if not hundreds—of guards did not meet the required standards during his tenure.
According to the lawsuit, when Sovitsky refused to falsify records and reported the misconduct to the State Department, he faced retaliation, including threats and eventual termination. This forms the basis for his retaliation claim under the False Claims Act, which protects whistleblowers who expose fraud against the government.
In April 2025, Chief Judge George L. Russell III of the U.S. District Court for Maryland ruled that Sovitsky’s claims were sufficiently detailed and plausible to proceed. Specifically, the court found that allegations regarding fraudulent firearms qualifications and billing practices could constitute material false claims under federal law. While some parts of the case were dismissed, the central fraud and retaliation claims remain intact.
Under the False Claims Act, if proven, the government may recover treble damages (three times the actual losses) and statutory penalties for each false claim. Given the scale of the embassy contracts, damages could easily reach into the millions.
This case illustrates the power of whistleblowers in uncovering government contracting fraud and the legal protections available to them. Whistleblowers often risk their jobs and livelihoods to expose wrongdoing, but the False Claims Act provides both financial rewards and legal safeguards against retaliation.
Protecting Whistleblowers and Employees in Maryland
At Lebau & Neuworth, we are proud to represent employees—including whistleblowers—across Maryland and the DC metro area. We know that speaking up against powerful employers or government contractors takes courage. Whether you are facing wrongful termination, workplace retaliation, discrimination, harassment, or wage theft, our experienced Baltimore employment lawyers are here to fight for your rights.
If you have been retaliated against for reporting fraud, discrimination, or other unlawful practices, don’t face it alone. Contact our team today to schedule a confidential consultation.
Your career and your future are too important to leave unprotected. Let us help you stand up for your rights.
Call us now or reach out through our website to speak with a trusted Maryland whistleblower attorney.
