BusinessEthics & CorruptionGovernment

AECOM has agreed to pay $11.8 million to resolve allegations that it knowingly submitted false claims to the Federal Emergency Management Agency on behalf of schools while working on Hurricane Katrina recovery in New Orleans, the U.S. Dept. of Justice announced Oct. 24. A whistleblower working for AECOM originated the case, court records show.

FEMA hired AECOM as a technical assistance contractor supporting its disaster recovery efforts following the 2005 hurricane, according to Justice Dept. officials. In the role, Firm employees prepared project worksheets on behalf of institutional applicants whose structures were damaged by the storm. These included descriptions of damage, scopes of work and cost estimates to repair or replace structures. FEMA used the worksheets to determine the amount of public assistance funding it would supply to the applicants.

Officials allege that one AECOM project officer on the Katrina recovery effort between 2006 and 2010 wrote fraudulent worksheets for some applicants. In one case for Xavier University of Louisiana, he wrote that a student center had a finished basement, when it actually did not. The false information led FEMA to pay applicants more than what its rules actually permitted, said Justice. That money went to the applicants, and not AECOM.

AECOM supervisors reviewed the applications, but did not correct them, Justice officials said.

The settlement agreement resolves the government’s...

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