Defense Contractor Settles False Claims Act Allegations for $600,000

A Texas-based defense contractor has agreed to pay $600,000 to resolve allegations of improper billing for services never rendered under a contract with the U.S. Air Force.

U.S. Attorney Philip Sellinger announced that Solution One Industries Inc., a defense contractor headquartered in Killeen, Texas, has settled allegations that it billed for services it did not perform while contracted to support the 421st Combat Training Squadron at Joint Base McGuire-Dix-Lakehurst, New Jersey. The improper billing is said to have occurred between December 2017 and June 2019.

According to the allegations, Solution One billed for various tasks it never completed, such as providing backup power and delivering briefings to military personnel, under specific contract line items. The settlement resolves these claims under the False Claims Act, without any admission of liability by the company.

The investigation was conducted by the U.S. Department of the Air Force Office of Special Investigations, led by Brig. Gen. Amy S. Bumgarner. Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark represented the government in the case.

No further details regarding the settlement terms or Solution One's future contracts were disclosed.