The United States has intervened in a whistleblower lawsuit against AECOM and a group of disaster relief applicants, which alleged the defendants submitted false claims for reimbursement to the Federal Emergency Management Agency in relation to Hurricane Katrina disaster recovery efforts.
Recovery projects funded by the Stafford Act are generally limited to the effort and funds required to restore damaged facilities to their pre-disaster condition. The full cost of replacement is available only if repair estimates exceed a defined threshold.
The lawsuit alleges that AECOM, while serving as a technical assistance contractor supporting Hurricane Katrina recovery efforts, submitted false claims on behalf of applicants, by inflating repair estimates and providing other false information that increased funding for applicants. The lawsuit alleges that some of the applicants falsely certified the accuracy of this information and thus are jointly liable for the false claims submitted on their behalf. The relators allege AECOM management was aware of this situation by 2011, but failed to notify the government.
One of the funding recipients named in the lawsuit, Xavier University of Louisiana, has agreed to pay the United States $12 million to resolve its alleged role in the scheme. According to the allegations, Xavier improperly obtained funds for its gymnasium, student center, and electrical grid that substantially exceeded the amounts it was entitled to receive under program rules. As part of the settlement, Xavier has agreed to cooperate with the department’s investigation of other parties and any related litigation.
