Related Federal Cases
- Georgia Phillips, Medicaid Fraud Scheme, Texas 2024 · North Carolina
- Skylar Tarr McElwrath, Child Pornography Possession, Texas 2023 · Texas
- Ronnie LaShawn Allen, Crack Distribution, Texas 2022 · Arkansas
- Mirna Luna, Gun Smuggling, Texas 2024 · Florida
- Brian Keith Murphy, Gas Station Shooting, Texas 2024 · North Carolina
FreshPoint Inc. to Pay $4.2 Million for Overbilling the Department of Defense for Produce
A Houston-based food distribution company has agreed to pay $4.2 million to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts.
FreshPoint Inc., a wholly owned subsidiary of Sysco Corp., is accused of overcharging the government on hundreds of sales of fresh fruit and vegetables by improperly inflating its prices to reflect the company’s view of the prevailing market price of the goods at the time of sale.
The government alleged that this practice violated FreshPoint’s contracts with the government, which required the company to provide the produce at cost, plus a pre-established mark-up for profit, and did not allow FreshPoint to make additional price adjustments based upon perceived changes in market prices.
The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the government and to share in the proceeds of any settlement or judgment.
The whistleblower, former FreshPoint employee Charles Hall, will receive $798,000.
The settlement was the result of a coordinated effort by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Defense Logistics Agency Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned U.S. ex rel. Hall v. SYSCO Corp., et al., Case No: 4:11-CV-57 (S.D. Ga.).
Mandatory Facts:
Defendant/Respondent: FreshPoint Inc.
Criminal Charges: Overbilling the government for produce
City and State: Houston, Texas
Exact Date: December 17, 2007, through September 11, 2009
Sentence or Outcome: FreshPoint Inc. agreed to pay $4.2 million to resolve the allegations
Dollar Amounts: $4.2 million (settlement), $798,000 (whistleblower award)
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News