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.”