The Department of Justice announced today that the government has joined a civil lawsuit alleging that Lance Armstrong, Johan Bruyneel and Tailwind Sports submitted false claims to the U.S. Postal Service in connection with its sponsorship of a professional bicycle racing team by regularly employing banned substances and methods to enhance their performance, in violation of the USPS sponsorship agreements.
The lawsuit joined by the United States was filed by Floyd Landis, a former rider and teammate of Lance Armstrong on the USPS sponsored team from 2002 through 2004. The lawsuit was filed under the False Claims Act, which imposes liability on those who submit false claims for government funds, and provides for the recovery of three times the government’s damages, plus civil penalties.
From 1996 through 2004, the USPS sponsored a professional cycling team owned by Tailwind and its predecessors. Between 2001 and 2004 alone, the Postal Service paid $31 million in sponsorship fees. (Imagine how much could be recovered only the Justice Department went after its friends at the Wall Street firms, banks and ratings agencies that cost taxpayers billions upon billions of dollars because of false claims in the sub-prime mortgage business.)
Lance Armstrong was the lead rider on the racing team, and between 1999 and 2004, he won six consecutive Tour de France titles as a member of the USPS-sponsored team. Johan Bruyneel was the directeur sportif, or manager, of the cycling team.
“In today’s economic climate, the U.S. Postal Service is simply not in a position to allow Lance Armstrong or any of the other defendants to walk away with the tens of millions of dollars they illegitimately procured,” Ronald C. Machen Jr., U.S. Attorney for the District of Columbia.. (Again, this logic begs the Wall Street crook question and DOJ’s lack of interest in going after far bigger crooks.)
The sponsorship agreements gave the USPS certain promotional rights, including the right to prominent placement of the USPS logo on the cycling team’s uniform. Each of the agreements required the team to follow the rules of cycling’s governing bodies, which prohibited the use of certain performance enhancing substances and methods.
The lawsuit joined today by the government alleges that riders on the USPS-sponsored team, including Armstrong, knowingly caused the USPS agreements to be violated by regularly employing banned substances and methods to enhance their performance. The lawsuit further alleges that Bruyneel knew that team members were using performance-enhancing substances and facilitated the practice.
In a now infamous TV interview with Oprah Winfrey, Lance Armstrong contradicted his earlier denials and admitted that he used banned substances and methods throughout his career, starting in the mid-1990s. Armstrong admitted having engaged in banned practices during each of his seven Tour de France victories, including the six he won as a USPS rider. Armstrong explained that he avoided detection by anti-doping authorities by carefully timing his use of banned drugs so that they would leave his system prior to his undergoing cycling’s required periodic drug testing, which call into question the integrity of Tour officials and the international sanctioning bodies involved.
The False Claims Act contains a qui tam or whistleblower provision, which permits private parties to sue on behalf of the United States for false claims and share in any recovery. The False Claims Act permits the government to investigate the allegations and intervene, or decline to intervene in the whistleblower’s lawsuit. While the government notified the court that it was joining the lawsuit’s allegations as to Armstrong, Bruyneel, and Tailwind, it advised the court that it was not intervening in the case as to several other defendants named in the complaint.
