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Coming On 'Whistleblower:' Terrifying Journey After Finding Massive Fraud At Military Contractor

July 26, 2018 - 3:53 pm
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NEW YORK (WCBS 880/CBS News) -- Friday’s episode of “Whistleblower” On CBS takes a look at the massive fraud case against Northrop.

James Holzrichter thought he had landed his dream job working for Northrop, but upon moving from testing equipment to “quality assurance” – that is, ensuring that the company was billing the government properly for parts – he discovered some major discrepancies.

“I was finding discrepancies, things that just didn’t add up,” Holzrichter said in a news release. “I came to believe that the company might be double- or even triple-billing for these expensive parts to the U.S. government. And this was adding up to the tune of millions of dollars.”

But Holzrichter was told to back off upon bringing his concerns to his superiors, and he began to suspect the billing irregularities were deliberate.

“All of the indicators were showing that there may be actual fraud,” he says. “I wanted no part of this. I could see myself going to jail.”

So Holzrichter became a whistleblower.

“He starts collecting all the evidence, taping it to his body, and smuggling it out; smuggling it home. He becomes a whistleblower, and this whistleblower case lasts 17 years. His daughter is 3 when he starts. She’s 20 when the case finishes,” host Alex Ferrer said.

Holzrichter said the case cost him his career, and a lot more than that.

“And during the course of that time, his phones are tapped at home. On three occasions, federal authorities have his home scanned and find wiretaps. A professional burglarizes home and does nothing except go through the evidence he has collected. His car, his daughter’s car, his son’s car are all tampered with – and result with the front tire of the car falling off while they’re driving. They end up in financial straits and end up living in a homeless shelter,” Ferrer said. “I mean, everything that could happen, happens.”

Holzrichter admits he has no proof of who did the burglary, wiretap, and tampering.

“But he’s terrified, you know, somebody’s going to kill him,” Ferrer said.

For the first time on Friday, the entire Holzrichter family will talk openly about their harrowing experiences.

“The cost is so much,” Holzrichter says to his five children, now grown. “How do I give you back your childhood?”

The new episode of “Whistleblower” airs at 8 p.m. Eastern Time Friday on CBS2 in New York and on CBS stations nationwide.