WASHINGTON (Legal Newsline) — The Department of Justice has announced a lawsuit against Derish M. Wolff and Salvatore J. Pepe, respectively the former CEO and CFO of Louis Berger Group Inc. (LBG), for alleged violations of the False Claims Act. 

The government alleges Wolfe and Pepe conspired to overbill the U.S. Agency for International Development (USAID) and other government agencies for costs incurred on government contracts in Afghanistan, Iraq and other countries. The defendants allegedly conducted accounting schemes that billed for indirect overhead costs at inflated rates. 

“Those who do business with the U.S. government should expect appropriate consequences if they do not deal fairly,” said principal deputy assistant attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this case demonstrates, the government will hold both corporate entities and individuals accountable if they misuse taxpayer funds.” 

The Civil Division’s commercial litigation branch and the U.S. Attorney’s Office for the District of Maryland are handling the matter. 

“I applaud the dedication of USAID-OIG special agents, along with special agents of the FBI and the Defense Criminal Investigative Service,” said USAID inspector general Ann Calvaresi Barr. “Their joint investigative work has helped the Justice Department take action against those responsible and signals our continuing commitment to protecting public funds from fraud, waste and abuse.”

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