Privatized military housing group pleads guilty to fraud

Locally, the BBC provides living environments for the Mayport naval base.

ATLANTIC BEACH, Fla .– One of the nation’s largest providers of privatized military housing to the U.S. military pleaded guilty last week to defrauding several branches of the U.S. military.

Balfour Beatty Communities LLC (BBC) admitted to obtaining performance bonuses by submitting false information to the US Army, US Air Force and US Navy.

Locally, the BBC provides living environments for the Mayport naval base.

The BBC argued, under a plea deal with the United States, before U.S. District Judge Emmet G. Sullivan in the District of Columbia on Wednesday.

“Instead of quickly fixing US military housing, the BBC lied about the repairs to pocket millions of dollars in performance bonuses,” Deputy Attorney General Lisa O. Monaco said.

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Under the terms of the plea deal, the BBC agreed to pay more than $ 33.6 million in criminal fines and over $ 31.8 million in restitution to the US military, to serve three years of probation and engage an independent compliance monitor for a period of three years.

Separately, the BBC has reached a False Claims Act (FCA) settlement under which it is required to pay around $ 35.2 million in civil restitution and penalties in the United States, which the Department of Justice has charged against the penal restitution and the BBC fine.

According to court documents, from around 2013 to 2019, BBC employees falsified information so that the BBC’s incentive pay claims falsely reflected that the BBC had met its performance targets. However, in reality the BBC did not legitimately meet these goals and instead BBC employees altered or manipulated the data to falsely inflate these metrics.

Ultimately, the manipulation of these measures fraudulently tricked service branches into paying performance incentive fees that the BBC had not collected.

As a result, according to court documents, there were long and unnecessary delays in resolving maintenance issues for residents.

As part of the BBC Advocacy Agreement, the BBC has agreed to cooperate fully with the United States on all matters relating to the conduct covered by the Advocacy Agreement and other conduct affecting the United States. ” under investigation by the United States, to report violations of U.S. federal criminal law, and continue to implement a compliance and ethics program designed to effectively detect and deter violations of U.S. anti-fraud laws in all of its operations.

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