Judge Finds KBR Violated FCA Through Kickback Scheme

Law360 (March 25, 2021, 8:31 PM EDT) -- A Texas federal judge ruled Thursday that KBR violated the False Claims Act when an employee engaged in a kickback scheme with a subcontractor, finding the scheme inflated claims for payment under a U.S. Army contract for Iraq War logistics support.

KBR Inc. had acknowledged that a kickback scheme had existed between one of its employees and a subcontractor, and the government had done enough to show that the arrangement resulted in inflated billing under related task orders, U.S. District Judge Kenneth M. Hoyt ruled.

"The record evidence establishes that, in executing Subcontracts 167 and 190 for inflated amounts, [that employee]...

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