DOJ secures $1.1 million settlement with Egypt-based contractor that allegedly submitted false claims to USAID

By Mark Iandolo | Jul 19, 2017

BOISE, Idaho (Legal Newsline) — The U.S. Department of Justice announced on June 13 that Misr Sons Development (Hassan Allam Sons, “HAS”), a construction company based in Cairo, will pay $1.1 million over allegations of submitting false claims in connection with U.S. Agency for International Development (USAID) contracts.

“Contractors who misrepresent their eligibility for government contracts undermine the government procurement process,” Joyce R. Branda, deputy assistant attorney general of the civil division, said. “The Justice Department will take action to protect that process and to ensure that taxpayer funds are not misused.”

According to allegations, HAS participated in government contracts for which it was not eligible. The contracts in question relate to USAID-funded water and wastewater infrastructure projects in Egypt in the 1990s. HAS worked on the projects as part of a joint venture partnership to allegedly conceal its participation.

“USAID Office of Inspector General extensively investigated this matter and thanks the Department of Justice for its tenacity and dedication,” Special Agent in Charge Jonathan Schofield of the USAID Office of Inspector General said. “Total settlements on this matter exceed $10 million and demonstrate once again that the United States expects its contractors to execute their awards in accordance with all requisite terms and conditions, whether operating domestically or overseas.”

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