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Blast Wall Contractor Faces Blast of Their Own
In a shocking turn of events, Hesco Bastion Limited, a defense contractor based in Leeds, England, has agreed to pay $2.1 million to the United States to resolve allegations of false claims and overcharges. The allegations stem from the international transportation of blast walls that Hesco manufactured and sold to the U.S. government.
The government contends that Hesco charged a fixed price of £650 per truckload for the transportation of blast walls, known as Concertainer Units, while paying its transportation subcontractor less than £650 per truckload. This is a clear violation of the parties’ contracts, and the government alleges that Hesco knowingly provided false information to cover up the scam.
In 2009, the government requested documentation from Hesco regarding the amount it paid its transportation subcontractor. Instead of providing accurate information, Hesco allegedly submitted 47 false invoices that were made to appear to be authentic, and engaged in a kickback scheme to receive undisclosed off-invoice credits from its transportation subcontractor.
The investigation was conducted by the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case was prosecuted by Assistant United States Attorneys Joel M. Sweet and Colin M. Cherico.
The claims resolved by this settlement are allegations only; there has been no determination of liability. However, the fact that Hesco has agreed to pay $2.1 million is a clear indication that the company has something to hide.
This is not the first time that Hesco Bastion Limited has been involved in controversy. As a privately held company, it is unclear how much scrutiny it has faced in the past. However, one thing is clear: the company’s actions have had serious consequences for the U.S. government.
The settlement serves as a reminder that companies that engage in false claims and overcharging will be held accountable. The U.S. government will not tolerate such behavior, and companies that engage in it will face severe penalties.
The case is a victory for transparency and accountability in government contracting. It shows that even the biggest and most powerful companies can be held accountable for their actions.
As the U.S. government continues to investigate and prosecute companies that engage in false claims and overcharging, it is clear that Hesco Bastion Limited will not be the last company to face the music.
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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