US Foodservice Pays $30M To Settle Fraud Charges

Law360, New York (September 14, 2010, 12:45 PM EDT) -- Leading food distributor U.S. Foodservice Inc. has agreed to pay $30 million to resolve U.S. Department of Justice allegations that it used shell companies to fraudulently overcharge the Department of Defense and the Department of Veterans Affairs for food products the company supplied under government contracts.

Judge John F. Keenan signed off on the settlement between U.S. Foodservice and the government in the U.S. District Court for the Southern District of New York on Monday.

From at least 2000 until 2005, U.S. Foodservice fraudulently inflated the...
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