RE/MAX Allegiance Relocation Services pays $500,000 to settle whistleblower's allegations of overcharging for federal employee moving services

by Ben Vernia | July 8th, 2014

On July 8, the Department of Justice announced that Virginia-based RE/Max Allegiance Relocation Services has agreed to pay $500,000 to settle charges, first filed by a whistleblower, that the company overcharged the government for moving services provided within the United States and between the U.S. and Canada. According to DOJ’s press release:

RE/MAX Allegiance Relocation Services, a Virginia-based move management company, has agreed to pay the government $509,807 to resolve allegations that it violated the False Claims Act by overbilling for transportation services, the Department of Justice announced today.

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The settlement relates to allegations involving contracts to transport personal property of federal employees relocating duty stations within the United States and between the United States and Canada. The government alleged that the defendant charged for move management services that were not provided and overbilled agencies on other moves by charging inapplicable tariff rates.

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DOJ announced that the whistleblower, a former employee of the company, will receive $86,667 (a 17.3% relator’s share).

One Response to “RE/MAX Allegiance Relocation Services pays $500,000 to settle whistleblower's allegations of overcharging for federal employee moving services”

  1. Relocation Professional says:

    I hope legal action is taken against Allegiance Relocation. This is an embarrassment and a “black eye” for the entire relocation industry.

    The billing methods used by Allegiance are criminal and fraudulent. It is well known in the industry that Allegiance was over billing the government and forging invoices by indicating the GSA01 tariff was used when it in fact was not. The government needs to peruse this and make an example of Allegiance.

    Allegiance is bragging that the over billing was $11 million and their fine of $500,000 was “worth it” and “smart business”!

    Allegiance has published G rates on the GSA schedule as if they are a moving company when in fact they are not. There rates are set at the highest price point of all movers to over bill government agencies.

    Other employees of Allegiance who know what is going on have an obligation to come forward. If they do not they should be prosecuted.

    I hope justice is served and Allegiance is criminally prosecuted in addition to their small fine and banded from the GSA schedule indefinitely.

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