Kellogg Brown & Root Services Inc. and three of its affiliates have agreed to pay $13.67 million to resolve False Claims Act and Anti-Kickback Act violations in connection with KBR’s Logistics Civil Augmentation Program (LOGCAP) III contract and multiple subcontracts.
In its complaint, the United States alleged that KBR employees responsible for awarding subcontracts rigged the bidding process in favor of two companies: La Nouvelle Trading & Contracting Co. and First Kuwaiti Trading & Contracting Co. In return, principals from those companies paid kickbacks to the KBR employees. The government also alleged that the subcontract prices were artificially inflated, with those costs passed on to the United States.
The government also alleged that KBR extended subcontracts for the lease of trucks and refrigerated trailers, even though its employees knew that the leased equipment was no longer needed and had been returned to the subcontractor. KBR then billed the United States for this overpayment, and created false documents to justify the overpayment.
Source:
- Department of Justice: KBR Defendants Agree to Settle Kickback and False Claims Allegations
