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U.S. files False Claims Act suit alleging company defrauded emergency relief agency

The United States Dept. of Justice has filed suit against DRC Inc., accusing the company of lying to secure a contract with the U.S. Agency for International Development or USAID.

The suit alleges that the company falsified its application in order to qualify for a contract to build and repair sewer systems in Honduras.

The company’s lawyers contend that the government does not have standing to file the suit since their contracts were with the Honduran government, even though U.S. funds paid for the work.

The U.S. Government maintains that the entire $12.7 million paid to DRC was the result of fraud. Under the terms of the False Claims Act, that amount would be trebled and additional penalties may be imposed.

The suit was reported on in the December 24, 2004 issue of the Mobile Register.

 

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