This week’s Department of Justice “catch of the week” goes to RE/MAX Allegiance Relocation Services. On Tuesday, the Virginia-based move management company agreed to pay roughly half a million dollars to resolve allegations it violated the False Claims Act by overbilling the government for transportation services. The settlement was the result of a coordinated effort by the Justice Department and the Offices of the Inspector General of the General Services Administration, the Department of Homeland Security, the Department of Agriculture and NASA. See DOJ press release.
The challenged conduct related to RE/MAX’s government contracts to transport personal property of federal employees relocating within the US and between the US and Canada. The government alleged RE/MAX charged for relocation services it never provided and charged inflated rates for relocation services it did provide by charging inapplicable tariff rates. The allegations originated from a whistleblower lawsuit filed by former RE/MAX employee Michael Angel under the qui tam provisions of the False Claims Act. Mr. Angel will receive roughly $87,000 of the government’s recovery.
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