Israeli-Owned Co. To Pay $2.8M Over US Military Contract

By Mike LaSusa (November 13, 2019, 9:28 PM EST) -- An American subsidiary of an Israeli construction company will pay the U.S. government $2.8 million and abandon $16 million in potential administrative claims, ending False Claims Act allegations that its Israeli parent actually did the work on a military port contract meant for U.S.-based companies.

ABS Development Corp., a subsidiary of Israel's Ashtrom International Ltd., agreed to the settlement without admitting wrongdoing, the U.S. Department of Justice announced Wednesday.

"Those who contract with the government are obliged to follow the law," the DOJ's Jody Hunt, who heads the agency's civil division, said in a Wednesday news release. "We will continue to...

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