Industries for the Blind and Visually Impaired, Inc., False Claims and Kickback Scheme, Wisconsin 2023

Industries for the Blind and Visually Impaired, Inc. (IBI), a Milwaukee-based corporation, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act and Anti-Kickback Act in connection with certain federal contracts set aside to employ blind or visually-impaired workers in Milwaukee, Wisconsin, on 2023.

IBI was established to increase employment and training opportunities for persons who are blind or visually-impaired. Headquartered in West Allis, Wisconsin, IBI receives set-aside contracts from federal agencies under the federal government’s AbilityOne Program. In exchange, IBI agrees to give jobs to workers who are blind or visually-impaired and comply with other contractual requirements.

The settlement resolves allegations that, between 2009 and 2018, IBI misrepresented to the U.S. AbilityOne Commission when requesting set-aside contracts for furniture design and installation services that it would maintain a 3:1 blind-to-sighted ratio of employees, and that furniture designers and sales representatives working for IBI took impermissible payments and gifts from manufacturers on certain contracts. It also resolves claims that IBI improperly subcontracted a set-aside contract for screen-printed clothing to an entity that did not generally use blind labor.

“AbilityOne contractors have a duty to follow the law and meet their important commitments to employ workers who are blind or severely disabled,” said Acting Assistant Attorney General Jeffrey Bossert Clark. “This settlement demonstrates our continuing vigilance to ensure that those receiving set-aside contracts under the AbilityOne Program comply with the conditions of their awards.”

The AbilityOne Commission operates under the authority of the Javits-Wagner-O’Day Act, which was passed in 1971 to increase employment and training opportunities for persons who are blind or visually-impaired, or who have disabilities so severe that they are otherwise unable to work at competitive employment. More than 400 companies participate in the AbilityOne Program and receive set-aside federal contracts in exchange for employing approximately 45,000 people who are blind or have severe disabilities.

“By its conduct, IBI thwarted the AbilityOne Program’s goal of increasing employment and training opportunities for persons who are blind or visually-impaired,” said U.S. Attorney Matthew D. Krueger. “This settlement reflects our office’s continuing efforts to combat violations of the False Claims Act and protect federal programs.”

The settlement with IBI resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States. Accordingly, the whistleblower will receive a share of the settlement. The lawsuit is captioned United States ex rel. Inzeo v. Industries for the Blind, Inc., 15-cv-996, in the United States District Court for the Eastern District of Wisconsin.

Source: https://www.justice.gov/usao-edwi/pr/milwaukee-corporation-established-provide-jobs-blind-or-visually-impaired-individuals