Thompson Construction Group Inc., based in Sumter, South Carolina, has agreed to a settlement of $191,070 with the United States government. The settlement resolves allegations of the company violating the False Claims Act. Acting United States Attorney Lisa G. Johnston announced that the company allegedly submitted false claims for federal disaster recovery grant funds and falsely certified contract compliance in constructing homes.
This case stems from a 2016 disaster when historic flooding struck central and southern West Virginia, leading to a federal disaster declaration. In response, Congress allocated disaster recovery funds through the Department of Housing and Urban Development (HUD) for rebuilding efforts, specifically targeting low-income homeowners.
Thompson Construction Group was awarded contracts to rebuild homes in West Virginia, which required the installation of water management systems like crawl space drainage systems and sump pumps. However, it was discovered that these systems were not installed, contrary to contract requirements, resulting in false claims and certifications being submitted.
The settlement includes $95,535 in restitution and an equal amount in double damages under the False Claims Act. Acting United States Attorney Lisa G. Johnston emphasized the impact on families left vulnerable due to the construction failures, while HUD-OIG Special Agent-in-Charge Shawn Rice criticized the misuse of federal funds intended for flood victims. The Commission on Special Investigations, led by Director Rick Eplin, played a significant role in the investigation, gathering evidence and conducting interviews.
The full press release regarding the settlement is available on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.