MONTGOMERY, Ala. (WSFA) - A New York man and two companies he operates agreed to pay $1 million to resolve allegations that they violated the False Claims Act, according to the Department of Justice.
The settlement with Ranga Ranganathan, Nielsen Hardware Corporation and J&P Khamken Industries was unsealed this week in federal court in Montgomery. The allegations have not been proven in court.
According to the government, after Ranganathan acquired J&P Khamken Industries in May 2017, the companies began sourcing products and parts from China and supplying them to the department, either directly or as a subcontractor. The government alleged that paperwork submitted to seek payment falsely stated the products complied with federal purchasing rules.
The claims involve products supplied from May 2017 through November 2019, including aluminum tables, storage racks, vehicle panels, mounting brackets and equipment used to handle ammunition.
Federal rules generally favor U.S.-made goods for government purchases and restrict the use of certain metals in military equipment. China does not qualify for an exception to those rules.
The settlement also resolves a lawsuit brought by two J&P Khamken Industries founders and former employees. They will receive part of the settlement under a law that allows people to report alleged fraud involving government payments.
Not reading this story on the WSFA News App? Get news alerts FASTER and FREE in the Apple App Store and the ...
MONTGOMERY, Ala. (WSFA) - A New York man and two companies he operates agreed to pay $1 million to resolve allegations that they violated the False Claims Act, according to the Department of Justi...