Otis Worldwide Corporation, more commonly known by its operating name, Otis Elevator Company, has agreed to a considerable sum to settle a dispute over allegations of fraud under the False Claims Act (FCA). The case revolves around accusations that Otis submitted invoices for elevator maintenance work to the Tennessee Valley Authority (TVA) that were not actually carried out as per the contract terms. The final figure to be paid by Otis in the settlement amounts to $616,987.02, a penalty for the purported oversight in their billing practices.
According to the U.S. Attorney’s Office for the Eastern District of Tennessee, the agreement highlights the rigorous expectation that contractors like Otis must "submit invoices and seek reimbursement solely for work and services that have been performed as claimed." U.S. Attorney Francis M. Hamilton III emphasizes the commitment of his office and federal partners, such as the TVA Office of the Inspector General, to address and correct any misallocation of public funds, stemming from fraudulent activities.
This decision comes at the end of an inquiry targeting an August 2017 contract between Otis and the TVA. The investigation, conducted jointly by the United States Attorney’s Office for the Eastern District of Tennessee and the TVA Office of Inspector General – Office of Investigations, centered on preventive maintenance services stipulated in the contract, which Otis was alleged to have invoiced for but did not actually provide....
Otis Elevator Company has agreed to pay more than $500,000 to resolve allegations tied to the False Claims Act. The settlement was announced Friday by the U.S. Attorney’s Office for the Eastern Di...