March 13, 2018

Beam Bros. Trucking Agree to Settle Civil False Claims Act Allegations

By the C|C Whistleblower Lawyer Team

Beam Bros. Trucking, a Virginia trucking company, has agreed to pay $1,025,000 to resolve allegations under the False Claims Act that Beam Bros. overcharged the U.S. Postal Service (USPS) on contracts to transport mail. This settlement resolves allegations that BBT misused USPS issued credit cards to purchase fuel on contracts that did not allow for their use, resulting in inflated charges.

“The Department of Justice takes seriously its role in protecting the federal procurement process from false claims,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “This settlement demonstrates that we will hold accountable federal contractors engaging in fraud, and will ensure that federal funds are protected from overcharges and abuse.”

“Contractors working for the federal government are held to the same high ethical standards as full-time employees,” U.S. Attorney for the District of New Jersey Craig Carpenito said. “This settlement will return more than $1 million to the USPS.”

The settlement resolves allegations made in lawsuit filed under the whistleblower provision of the False Claims Act by Bobby Blizzard, a former BBT employee. The law allows private citizens, known as relators, to bring a lawsuit on the government’s behalf, rewarding them with a significant portion of the government’s recovery (between 15% and 30%).

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