The False Claims Act (FCA), which is sometimes referred to as the “Lincoln Law”, is a federal law designed to recover funds obtained through government contractor fraud and other fraud perpetrated against the U.S.

It is a vital program that encourages and rewards people who see government contractor fraud in their place of employment to step up and act.  These witnesses that come forward are usually give a portion of the monetary damages that are returned – up to 25% according to the statute.

Agility to Pay $95 Million in Government Contractor Fraud Settlement

According to Law360, between 2003 and 2010, Agility Public Warehousing Co. KSC allegedly overcharged for fruits and vegetables and omitted returning supplier rebates to the U.S. while operating as a vendor.

In this supposed case of government contractor fraud, Agility held a huge contract with the U.S. government in which it supplied food to active duty troops in Iraq, Kuwait, and Jordan. Agility has not taken responsibility in any way for accusations filed under the FCA.  It did, however, pay $95 million to reach this civil action settlement.

According to Law360, the U.S. Department of Justice (DOJ) has required that the company be overseen in the future by an independent corporate monitor. This settlement requirement is part of an ethics and compliance program. It is designed to actively discourage the kind of activities that led to alleged government contractor fraud.

The Suspension is Lifted

According to the DOJ, Agility had been suspended from contracting with the federal government since 2010. That suspension was lifted after the civil settlement in this government contractor fraud case was reached. The company also agreed to pay a small restitution after pleading guilty to misdemeanor criminal fraud charges.

As part of that restitution, Agility had to agree to drop claims against the Defense Logistics Agency (DLA) which had been pending for some time. The claims against the DLA were close to a quarter million dollars. The DLA also had a countersuit in place which was also dropped against the company and all its affiliated units.

The Parties Involved in Agility Government Contractor Fraud Case

Kamal M.A., a former business partner of Agility, was the whistleblower in this case. According to his counsel, he is pleased with the settlement for the justice it serves the American people and the servicemen and women that laid their lives on the line for our way of life.

If the court approves the settlement, Mr. A. will receive a portion of the funds recovered up to $38.8 million.

All parties and counsel to this government contractor fraud case continue to hold firm to their positions on the matter. According to Law360, Agility believes that, at all points in their mission to bring food to active duty troops overseas, they maintained transparency and behaved responsibly.

The U.S. Attorney for the Northern District of Georgia was pleased with the outcome in that it demonstrated that government contractors would be held accountable in all they did to serve the government and its people.