June 2, 2021

Pennsylvania-based fuel distributor Naughton Energy Corporation and two of its owners, Mariette and Joseph Naughton, have agreed to pay $692,000 over the next five years to settle claims of causing false claims to be submitted to the Department of Transportation (DOT).  As a subcontractor on the federally funded New NY Bridge Project, Naughton Energy, a Disadvantaged Business Enterprise (DBE), had represented to the prime contractor that it could deliver fuel to the worksite wholly independently.  However, lacking the requisite vehicle and employees to deliver fuel, and without the knowledge of the prime contractor, Naughton Energy arranged for a non-DBE subcontractor to supply the missing components in exchange for half of its profits from the project.  USAO SDNY

Tagged in: FCA Federal, Government Procurement Fraud, Misrepresentations, Set-Asides and Preferences,