A US subsidiary of UK contractor Balfour Beatty has agreed to pay $65.4m to settle a case brought by the Department of Justice into the fraudulent provision of maintenance in military housing.
Balfour Beatty Communities (BBC) pleaded guilty on 22 December to one count of fraud against the United States.
“Instead of promptly repairing housing for US servicemembers as required, BBC lied about the repairs to pocket millions of dollars in performance bonuses,” said Deputy Attorney General Lisa O. Monaco.
“This pervasive fraud was a consequence of BBC’s broken corporate culture, which valued profit over the welfare of servicemembers,” she added.
US District Judge Emmet Sullivan accepted the plea and sentenced BBC to pay over $33.6m in criminal fines and over $31.8m in restitution to the US military. The company will also have to serve a probationary period and engage an independent compliance monitor for a period of three years.
Separately, BBC also entered into a False Claims Act settlement with the US to resolve its civil liability for $35.2m. The amounts paid under the civil settlement will be credited against the amounts owed under BBC’s criminal plea.
According to court documents, BBC, headquartered in Malvern, Pennsylvania, operated privatised military housing at 21 Air Force, 18 Navy, and 16 Army bases across the US, accommodating tens of thousands of service members and their families.
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