CHARLESTON, W.Va. (WCHS) — Federal prosecutors announced a settlement agreement with an out-of-state construction company has been reached after the group made false claims for projects completed in West Virginia following 2016’s devastating floods.
Thompson Construction Group, based in Sumter, South Carolina, will pay the United States more than $190,000 to resolve allegations of submitting false claims for payment from federal disaster recovery grants, according to a news release from the U.S. Attorney’s Office for the Southern District of West Virginia. In addition, federal prosecutors said the company falsely certified homes were compliant with contract conditions.
In June 2016, portions of southern and central West Virginia were ravaged by severe weather, displacing thousands of residents and leading to a presidential disaster declaration.
The news release said the construction group secured contracts to reconstruct homes affected by flooding, which required water management systems to address future flooding concerns. Requirements such as drainage systems and sump pumps were included in the contracts.
Prosecutors said Thompson submitted invoices that certified compliance with contract terms, but the required water management projects had not been completed.
BE THE FIRST TO COMMENT
The settlement requires the group to pay $95,535 in restitution and the same amount in double damages in accordance with the False Claims Act.
By Matthew Knott and Nick Bonyhady April 19, 2025 — 5.54pm , register or subscribe to save articles for later. Save articles for later Add articles to your saved list and come back to them any tim...