Agility in more hot water over military food fraud claims

A Kuwaiti food supplier could face charges of defrauding the U.S. government as federal prosecutors investigate claims against The Public Warehouse Company, also known as Agility. The alleged fraud is to the tune of $68 million, and involves a complex scheme of funding formulas used to defraud contracts to supply troops in Iraq, Kuwait and Jordan. The indictment was originally released in November 2009, but has become more active of late and ignited controversy when the government subpoenaed ex-Army Major General Dan Mongeon, who is now a unit CEO at Agility.

Agility is accused of submitting false invoices to a logistics center, and inflating prices since 2003. Prosecutors claim that Agility received rebates and discounts from vendors that it did not pass on to the government in accordance with their contract. Additionally, prosecutors allege the company asked vendors to manipulate the product packaging so it could bill the government twice as much. Agility says this is a civil contract dispute and not a criminal matter.

For more information see:

Contact one of our

Experienced Attorneys

If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.