WEST VIRGINIA (LOOTPRESS) – Thompson Construction Group Inc. has agreed to pay $191,070 to settle allegations that it violated the federal False Claims Act by submitting false claims for federal disaster recovery funds and falsely certifying that homes it built met contract requirements, Acting U.S. Attorney Lisa G. Johnston announced.
The case stems from the 2016 catastrophic flooding that devastated central and southern West Virginia, destroying thousands of homes and leaving at least 23 people dead. Following a presidential disaster declaration, Congress allocated Community Development Block Grant – Disaster Recovery (CDBG-DR) funds through the U.S. Department of Housing and Urban Development (HUD) to help rebuild homes for low-income residents.
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Thompson Construction was awarded contracts to reconstruct flood-damaged homes, with specific requirements for water management systems, including crawl space drainage and sump pumps to protect against future flooding. However, an investigation revealed the company failed to install these required systems while falsely certifying compliance and receiving federal funds.
As part of the settlement, Thompson will pay $95,535 in restitution and $95,535 in double damages under the False Claims Act.
“West Virginia families relied on Thompson Construction to rebuild their homes, only to be left vulnerable to future flooding,” said Acting U.S. Attorney...
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...