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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Fluor Corporation

Hanford P-Card False Claims Act and Anti-Kickback Act Liability

Date: 06/17/2011 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Energy

Contracting Party: Energy

Court Type: Civil

Amount: $4,000,000

Disposition: Settlement

Synopsis: Fluor Hanford Inc., a wholly-owned subsidiary of Fluor Federal Services Inc. and Fluor Corporation, agreed to pay the United States $4 million to resolve allegations that it knowingly submitted false claims and paid and received kickbacks relating to a contract to operate and manage the U.S. Department of Energy’s Hanford Nuclear Site. Between 2003 and 2008, Fluor employed individuals known as material coordinators to purchase supplies under the contract. Three material coordinators, Susanna Zuniga, Gregory Detloff and Paul Kempf, made hundreds of fraudulent purchases using government purchase cards, or P-cards; in addition, at least 14 material coordinators solicited, received and accepted kickbacks from a Hanford-area vendor known as Fast Pipe and Supply Company and its owner, Shane Fast (see related Fluor Corporation instance, “Hanford P-Card Fraud”). The government alleged that, as early as 2001 and repeatedly between 2001 and 2008, internal audits alerted Fluor to weaknesses in its P-card controls yet it failed to address these weaknesses.