Sunday, June 27, 2010

Gulf Oil Spill Cleanup Contractor Facing Prior Qui Tam Suit

Gulf oil spill cleanup spending will be heavily scrutinized for false claims act violations in the coming years, as the cleanup efforts ramp up, and over an estimated $20 billion dollars are poured into the region to mitigate some of the damage from the largest off-shore oil disaster in US history. Already, one contractor working on providing protection to the beautiful beaches of Florida's panhandle region has been accused of prior FCA violations in a contract from 2000 to help rebuilding in Honduras from the devastation of 1998's Hurricane Mitch. The lawsuit claims over $7 million in misrepresentations of labor and equipment charges for money received from the US Agency for International Development, although the defendant company has denied the accusations and taken its own legal actions to get paid. A portent of future fraud litigation and counter-suits involving a variety of contractors in the massive Gulf cleanup effort to come?

Read more in the Pensacola News Journal at:

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