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Contractors face lawsuit from the U.S. over fraud allegations

By Hoang Tran | Oct 13, 2015

The U.S. government is suing two contractors over alleged false claims of service.

The United States, on behalf of The National Aeronautics and Space Administration and the General Service Administration (GSA), filed a lawsuit on Sept. 2 in the Florida Middle District Court, Orlando Division, against URS Federal Services Inc. and Yang Enterprises Inc., citing violations of the False Claims Act.

According to the complaint, on June 18, 2008, NASA awarded URS Federal Services an approximately $1.46 billion contract to perform certain duties, among of which was fleet vehicle management, at the Kennedy Space Center. Sometime in 2008, URS Federal Services allegedly delegated the vehicle management of up to 400 vehicles to subcontractor Yang Enterprises Inc. Among the tasks assigned to the defendants for vehicle management were tire repairs. The plaintiff argues that, beginning June 2009 to April 2015, the defendants knowingly, recklessly, or as a product of ignorance, submitted false claims to the federal government for tire maintenance. The defendants allegedly billed the plaintiffs for early tire replacements, tire blowouts from an unusually large amount of vehicles, and falsified claims.

The plaintiff is suing for an undisclosed amount for recollection of monies for all false claims, damages, and requesting civil penalties upon defendants of $5,500 to $11,000 for each violation. They are represented by Assistant U.S. Attorney A. Lee Bently of Jacksonville, Fla.

U.S. District Court, Florida Middle Circuit, Orlando Division Court case number 6:15-cv-01429-GAP-DAB

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