Armed Forces News

A provider of privatized housing to the armed services will pay more than $33.6 million in fines and an additional $31.8 million in restitution, under a plea agreement with the U.S. Justice Department. Under the agreement, Balfour Beatty Communities (BBC) admitted it defrauded the Army, Navy and Air Force by submitting false information, according to the DoJ.

The company accepted millions of dollars in performance bonuses from the government, which was to be used to promptly perform repairs on military housing units it owned. Instead, the company pocketed the money.

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“This pervasive fraud was a consequence of BBC’s broken corporate culture, which valued profit over the welfare of service members,” said Deputy Attorney General Lisa O. Monaco.

The resolution of the case “sends a clear message to companies that if they do not maintain adequate compliance programs, voluntarily self-disclose misconduct, and fully cooperate with the government, they will pay a price that outweighs the profits they once reaped,” Monaco added.

The case against the Malvern, Pennsylvania-based company emerged after an investigation by federal law enforcement uncovered the company’s misconduct at two Georgia installations – Fort Stewart/Hunter Army Airfield in Savannah, and Fort Gordon in Augusta.

“The men and women who live in our nation’s military housing, including those at Fort Stewart and Fort Gordon, deserve prompt and professional maintenance service from their housing providers. That BBC would not only fail to deliver this service, but also falsify information their own pockets, is despicable,” said David H. Estes, U.S. Attorney for the Southern District of Georgia.

BBC also agreed to a separate settlement under the False Claims Act, under which it agreed to pay roughly $35.2 million in civil restitution and penalties. The company operates privatized housing units at 21 Air Force, 16 Army and 18 Navy bases in the continental U.S.