As we prepare for our upcoming holiday feasts, our thoughts go out to those who are serving our country and are unable to be with their families for the holidays. We give thanks to them and to their families and hope they all get to enjoy a special meal wherever they may be. In an ironic twist, one of the latest settlements in the government contracts fraud arena involves a company that agreed to supply produce to our servicepersons. The allegations are yet another reminder of the very real impact of government fraud, which takes money from taxpayer-funded coffers and, in the case of defense contract fraud, depletes funds needed for our nation’s defense and the protection of those who serve. We believe those who blow the whistle on government fraud are, like the men and women in the military, true Americans and our defense contract fraud law firm is proud to help.
DOJ Alleges California Company Overcharged for Produce, Violated Defense Contract, and Obstructed Investigation
Earlier this month, the Department of Justice (“DOJ”) announced that Coast Produce Company (“Coast”), a California company, agreed to pay $4 million to resolve contract fraud allegations. The settlement applies to both civil and criminal lawsuits alleging False Claims Act (“FCA”) violations and claims Coast obstructed a federal investigation. Coast also agreed to institute measures to ensure future compliance. It is important to note that Coast did not admit wrongdoing and the claims in the various suits remain allegations only.