One of the largest privatized military housing companies, which manages houses at Fort Bliss, will pay more than $65 million in fines and restitution after pleading guilty to defrauding the U.S. military.
Balfour Beatty Communities LLC pleaded guilty Dec. 22 to one count of major fraud against the U.S. as part of a plea agreement where company officials admitted their employees falsified records of maintenance and resident satisfaction of military housing, including at Fort Bliss, to continue to receive government funds.
As part of the plea agreement, Balfour Beatty Communities agreed to pay about $33.6 million in criminal fines and $31.8 million in restitution, U.S. Department of Justice officials said.
The allegations made against Balfour Beatty Communities were that from about 2013 to 2019, company employees falsified information so that BBC’s incentive fee requests reflected that BBC had met performance objectives, officials said.
However, the company actually failed to meet those objectives in many of the quarters during that time, officials said.
The objectives included primarily related to maintenance and resident satisfaction at various military housing projects.
“Instead of promptly repairing housing for U.S. servicemembers as required, BBC lied about the repairs to pocket millions of dollars in performance bonuses,” U.S. Deputy Attorney General Lisa O. Monaco said in a statement. “This pervasive fraud was a consequence of BBC’s broken corporate culture, which...
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