Egyptian construction company pays $1.1 million to settle False Claims Act allegations

by Ben Vernia | August 23rd, 2017

On June 13, the Department of Justice announced that a Cairo-based construction firm agreed to pay $1.1 million to settle allegations that the company defrauded the United States on Agency for International Development contracts. According to DOJ’s press release:

Misr Sons Development S.A.E. (Hassan Allam Sons, “HAS”), a construction company with its principal place of business in Cairo, Egypt, has agreed to pay $1.1 million to settle allegations that HAS submitted false claims in connection with U.S. Agency for International Development (USAID) contracts, the Justice Department announced today.

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The settlement concerns USAID-funded contracts for the construction of water and wastewater infrastructure projects in the Arab Republic of Egypt in the 1990s. The contracts were awarded to a joint venture partnership that included Washington Group International Inc. (WGI), Contrack International Inc. (Contrack) and HAS. The United States filed suit under the False Claims Act and the Foreign Assistance Act, alleging that HAS was ineligible to participate in the joint venture but that its participation was concealed from USAID. As a result, HAS and its partners allegedly received USAID-funded contracts to which they were not entitled. The settlement resolves only HAS’ liability. The United States previously settled with Contrack and WGI.

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The case apparently arose from a government investigation, and not from a qui tam whistleblower suit.

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