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Army Contractor Settles False Claims Act Allegations For $2 Million

April 29, 2016

Bering Straits Technical Services LLC (BSTS) and its parent company, Bering Straits Native Corporation (BSNC), have paid $2 million in damages to resolve numerous alleged violations of the False Claims Act.  Generally, it was alleged that BSTS and BSNC caused false claims to be submitted to the Department of Defense (DOD) and/or the Defense Logistics Agency (DLA) for maintenance facility services provided at the Red River Army Depot located near Texarkana.

The suit specifically alleged that beginning in September 2010, BSTS and BSNC submitted false preventative maintenance reports for maintenance work that was not performed.  The complaint also claimed that BSTS and BSNC employees were directed to repair equipment that no longer existed or was no longer in service and compelled to claim maintenance hours and supply costs for work that was not performed.  BSTS ceased providing services at the Red River Army Depot Aug. 31, 2014.

The settlement is the result of a False Claims Act qui tam suit that was filed in United States District Court for the Southern District of Texas in 2012.  The qui tam provision allows individuals, with knowledge of fraud against the government, to file suit on behalf of the United States.  The individual, known as a relator, is then typically entitled to receive a portion of the government’s recovery.

Read the full Department of Justice Press Release here.

To report fraud, contact Frohsin & Barger.

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