AUSTIN, Texas (AP) -- The Justice Department laid out its case in a lawsuit against Lance Armstrong on Tuesday, saying the cyclist violated his contract with the U.S. Postal Service and was "unjustly enriched" while cheating to win the Tour de France.
The government had
previously announced it would join the whistle-blower lawsuit brought by
former Armstrong teammate Floyd Landis. Tuesday was the deadline for
the Justice Department to file its formal
complaint.
The
Postal Service paid about $40 million to be the title sponsor of
Armstrong's teams for six of his seven Tour de France victories. The
filing in U.S. district court in Washington, D.C., says the USPS paid
Armstrong $17 million form 1998-2004.
The
lawsuit also names former team Armstrong team director Johan Bruyneel
and team management company Tailwind Sports as defendants.
The
financial costs for Armstrong and Bruyneel could be high. The
government said it would seek triple damages assessed by the jury.
"Defendants
were unjustly enriched to the extent of the payments and other benefits
they received from the USPS, either directly or indirectly," the
complaint said.
Armstrong, who in January
admitted using performance-enhancing drugs after years of denials, has
argued that the Postal Service's endorsement of his team earned the
government agency far more than it paid him.
Armstrong attorney Elliot Peters called the government's complaint "opportunistic, and insincere."
"The
U.S. Postal Service benefited tremendously from its sponsorship of the
cycling team. Its own studies repeatedly and conclusively prove this.
The USPS was never the victim of fraud. Lance Armstrong rode his heart
out for the USPS team, and gave the brand tremendous exposure during the
sponsorship years," Peters said.
The government must prove not only that the Postal Service was defrauded, but that it was damaged somehow.
Previous
studies done for the Postal Service concluded the agency reaped at
least $139 million in worldwide brand exposure in four years - $35
million to $40 million for sponsoring the Armstrong team in 2001; $38
million to $42 million in 2002; $31 million in 2003; and $34.6 million
in 2004.
The formal complaint against
Armstrong appears to rely heavily on evidence and statements supplied by
Landis and gathered by the U.S. Anti-Doping Agency for its 2012
investigation that exposed a doping program on the USPS team. Armstrong
has been banned from sports for life and stripped of his seven Tour de
France victories.
Bruyneel, who lives in London, also has been charged by USADA with doping violations but is fighting that case in arbitration.
The
government notes the contract with the Postal Service required riders
to follow the rules of cycling, which included bans on
performance-enhancing drugs and methods. Armstrong now admits using
steroids, blood boosters and other illegal performance-enhancing drugs
and measures to win.
By breaking the rules and
covering it up, Armstrong and Bruyneel committed fraud against the U.S.
government, the complaint said.
The complaint said that for years, team officials assured the Postal Service that the team wasn't doping.
Armstrong
had been the target of a federal criminal grand jury, but that case was
closed without charges in February 2012. Armstrong has previously tried
to settle the Landis whistleblower lawsuit, but those talks broke down
before the government announced its intention to join the case.
Armstrong
also is fighting a lawsuit from Dallas-based promotions company SCA to
recover about $12 million it paid him in bonuses, and a lawsuit from the
London-based Sunday Times, which wants to get back $500,000 it paid him
to settle a libel case.
