Public Works

Regulatory violations and improper accounting practices

Defense contractors who were awarded a contract to construct an air defense system in Saudi Arabia agreed to pay $16.7 million to resolve allegations of regulatory violations and improper accounting practices.  Specifically, the lawsuit alleged that the joint venture improperly obtained reimbursements for subcontractor costs from the U.S. before it paid out those costs and that it violated applicable cost accounting standards.  

Fraud in army construction project

A construction company agreed to pay the government $950,000 to settle a qui tam suit alleging that it defrauded the Army Corps of Engineers during the construction of a project at Fort Bragg, North Carolina. The action was filed by former company employees.  According to the government, the company did not follow the contract plans and specifications, failed to report substantial construction defects, and engaged in a cover-up to hide the problems from the Army Corps.