LOUISVILLE, Ky. – In a shocking turn of events, Nolin Rural Electric Cooperative Corporation (Nolin RECC) of Elizabethtown, Kentucky, has agreed to pay a hefty sum to settle allegations of energy bill fraud related to Fort Knox.
According to Acting United States Attorney John E. Kuhn, Jr., the investigation uncovered ‘criminal acts and millions of dollars in questionable payments.’ The United States has entered into a Non-Prosecution Agreement with Nolin RECC, which will see the company pay $7,619,333 in total settlement.
The settlement amount includes $2,619,333 as part of a civil settlement, with an additional $5 million forfeited to the United States Marshals Service. As part of the agreement, Nolin RECC has also agreed to employ a corporate ethics monitor for two years to oversee its dealings with the federal government.
The investigation, which spanned multiple years, revealed that Nolin RECC had submitted false bills to Fort Knox under an Army energy-saving program. The company billed Fort Knox $199,020 for work performed and expenses incurred related to a proposed waste-to-energy project that was never approved for implementation.
In another instance, Nolin RECC worked on a Sample Solar Panel Project at Fort Knox, but billed the project costs of $94,178 under three unrelated but previously authorized ECOs. The company also billed Fort Knox in excess of the rate allowed by the ECOs, adding an additional sum characterized as ‘Retained Savings.’
The United States has recovered $398,040 and $12,394 as part of the civil settlement, representing double damages for Nolin RECC’s unauthorized expenses and profits. The total settlement amount of $7,619,333 brings an end to the allegations of energy bill fraud against Nolin RECC.
The investigation was a collaborative effort between the United States Attorney’s Office and the Defense Criminal Investigative Service (DCIS). Acting United States Attorney John Kuhn praised the efforts of the investigative team, stating, ‘The Agreements we announce today result from an extensive investigation of the Ft. Knox energy program.’
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Key Facts
- State: Kentucky
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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