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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Overcharging on Food Contracts (Civil Case)

The United States joined a whistleblower lawsuit against Public Warehousing Company (PWC) (n/k/a Agility), PWC’s chief executive officer, Tarek Abbul Aziz Sultan Al-Essa, and The Sultan Center Food Products Company (TSC). The lawsuit was originally filed in 2005 by Kuwaiti resident Kamal Mustafa Al-Sultan, the owner of a Kuwaiti company that originally partnered with PWC to submit a proposal on the food supply contracts. The lawsuit alleged that, beginning in 2003, the defendants violated the False Claims Act by presenting or causing others to present false claims for payment under PWC’s multi-billion contracts with the Defense Logistics Agency (DLA) to supply food for U.S. service members serving in Kuwait, Iraq and Jordan. It alleged that defendants knowingly overcharged the United States for locally available fresh fruits and vegetables that PWC purchased through TSC, and that PWC failed to disclose and pass through rebates and discounts it obtained from its U.S.-based suppliers, as required by its contracts. In May 2017, Agility Public Warehousing Co. KSC agreed to resolve all criminal, civil, and administrative claims arising from the matter. Agility agreed to pay $95 million to resolve civil fraud claims, to forgo administrative claims against the government seeking $249 million in additional payments under its contracts, and to plead guilty to a criminal misdemeanor offense for theft of government funds. Pursuant to an administrative agreement, DLA agreed to release a claim of $27.9 million against Agility and lift its contracting suspension.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Defense - Army
Court Type
Civil
Disposition
Settlement
Date of Complaint
11/18/2005
Contractors Involved Penalty
Total
Agility $95,000,000
Further Information Released
DOJ Press Release 5/26/2017
Law Firm Press Release 5/26/2017
Settlement Agreement 5/26/2017
Agility Press Release 5/24/2017
DOJ Press Release 11/16/2009
Complaint 11/18/2005

See also:

Federal Contractor Misconduct Database