LEXINGTON, Ky. — In a stunning turn of events in the world of white-collar crime, Tabb Textiles Co., Inc. has coughed up $344,516.80 to settle allegations that it improperly billed Federal Prison Industries, Inc. (UNICOR) for fabric sourced overseas. The company’s financial misstep came to light after an internal investigation revealed a shocking mix-up of foreign and domestic fabrics.
Under the guise of fulfilling a contract with UNICOR, which awards inmates occupational skills and work experience, Tabb provided over six million yards of fabric. However, approximately 200,000 yards were from overseas sources, a breach of contractual obligations that came to light through an investigation prompted by a qui tam lawsuit.
The False Claims Act allowed a private citizen to initiate the probe, which revealed that although Tabb had procured domestic fabric for the contract, there was an alarming intermingling of materials after the bleaching process. The settlement sees Tabb fully cooperating with U.S. inquiries and agreeing to compensate for its oversight.
Tabb’s internal investigation revealed the extent of the mix-up, leading to the company’s decision to address the issue head-on. As part of the settlement, the private citizen who initiated the lawsuit will receive approximately $65,000.
The U.S. Department of Justice Office of Inspector General led the investigation, with Assistant United States Attorney Mary Melton representing the interests of the United States in court. The case, United States ex rel. Perlstein v. Tabb Textiles Co., Inc., et al., Case No. 21-cv-70-REW, is a stark reminder of the impact of white-collar fraud on government programs and the economy.
This payout comes as a significant victory for justice, ensuring that UNICOR’s mission to support inmates and the domestic textile industry is not compromised by such financial shenanigans. The settlement stands as a testament to the effectiveness of the False Claims Act in holding companies accountable for their actions.
RELATED: Tabb Textiles Bleeds $344K in Prison Fabric Fraud
Related Federal Cases
- Natera Pays $11M for Fraudulent Genetic Test Billing · Kentucky
- KY Woman Gets 44 Months in COVID Loan Scam · Kentucky
- KY Woman Gets 44 Months for COVID Loan Scam · Kentucky
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
- James’ Legal Victory Shields $4B for Disaster Prep · Pennsylvania
Key Facts
- State: Kentucky
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News