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PA Construction Firm CH2M Hill, Inc. Settles $1.5M False Claims Act Suit
PHILADELPHIA – In a shocking turn of events, CH2M Hill, Inc. (“CH2M”) has agreed to pay the United States $1,500,000.00 to settle civil claims concerning the company’s improper billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak.
According to sources, CH2M and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that CH2M bill actual labor and overhead rates for the employees working the various projects. However, the company allegedly continued to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred.
The United States contends that CH2M’s conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; b) billing employees of the lower overhead related company CH2M HILL Constructors, Inc. (“CCI”) as if they were employees of the higher overhead CH2M; and c) billing overhead rates of field employees that did not match the actual overhead rates of field employees.
The case arose when an audit of CH2M’s billing showed discrepancies. The case was investigated by Amtrak and the Department of Transportation’s Offices of Inspector General. For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement was handled by Assistant United States Attorney Colin M. Cherico.
The claims settled by this settlement agreement are allegations only and there has been no determination of liability, according to officials. A spokesperson for Amtrak was unavailable for comment.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania has worked tirelessly to ensure that those who commit fraud against the government are held accountable, said Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania.
As a result of this settlement, CH2M will pay $1,500,000.00 to the United States to resolve the civil claims against it.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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