In a shocking case of corporate greed, the US government has filed a complaint against Jacintoport International LLC under the False Claims Act, alleging that the cargo handling and stevedoring firm inflated charges on more than 50,000 tons of humanitarian food aid.
The complaint, filed by the US government in the United States District Court for the District of Columbia, claims that Jacintoport exceeded explicit caps on stevedoring charges contained in a contract with the US Agency for International Development (USAID). The firm, headquartered in Houston, allegedly made millions in inflated charges from January 2008 to October 2009.
“USAID’s humanitarian food aid program provides critical assistance to starving people all over the world,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The US government will take action against those whom we believe improperly charged the taxpayers in providing vital humanitarian aid.”
The lawsuit was initiated by John Raggio, a whistleblower who received an invoice from Jacintoport that contained the excessive stevedoring charge. Under the False Claims Act, the US can impose treble damages and penalties for the submission of false claims for government money and/or property.
“It is our number one priority to ensure that taxpayer dollars are wisely and properly used,” stated the USAID Deputy Inspector General Michael Carroll. “This case is another example of the excellent work of the USAID Office of Inspector General and the US government.”
The claims alleged in the US complaint are only allegations and do not constitute a determination of liability. The case is United States ex. rel. Raggio v. Jacintoport International LLC, Case No. 1:10-cv-01908 (D.D.C.).
The US Attorney’s Office for the District of Columbia, with assistance from the USAID Office of the Inspector General, handled the investigation of this matter, along with the Justice’s Civil Division.
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Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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