Defense Contractor Pays $3 Million to Settle Allegations of Submitting False Claims to the Army

OKLAHOMA CITY – LaForge & Budd Construction Company, Inc. ("LaForge"), has agreed to pay $3 million to settle civil claims stemming from allegations that it submitted false claims to the United States Army, announced United States Attorney Timothy J. Downing.

In 2010, LaForge, a Kansas company, entered into a contract to perform work on a dam on Lake George, at the Fort Sill Army Post in Lawton, Oklahoma.  The work included raising the elevation of the dam and required LaForge to perform the work in accordance with the plans and specifications provided in the contract.  The United States alleges LaForge submitted false claims for progress payments for work done on the dam’s embankment.  More specifically, LaForge represented that the fill it placed in the embankment of the Dam complied with the specifications, terms, and conditions of the contract when, according to the government’s allegations, unsatisfactory materials such as pieces of concrete, concrete rubble, and metal rebar were placed in the embankment.  On April 12, 2019, the United States filed an action against LaForge in the United States District Court for the Western District of Oklahoma, No. CIV-19-336-G.

To resolve these allegations, LaForge agreed to pay $3,000,000 to the United States.

In reaching this settlement, LaForge did not admit liability, and the government did not make any concessions about the legitimacy of the claims.  The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

This case was investigated by the Defense Criminal Investigative Service.  Assistant U.S. Attorneys Ronald R. Gallegos and Don Evans prosecuted the case.  To download a photo of U.S. Attorney Downing, click here.