Balfour Beatty subsidiary pleaded guilty to defrauding the U.S. military housing program
Company: Balfour Beatty plc
Summary
In December 2021, Balfour Beatty Communities LLC pleaded guilty to major fraud against the United States for a scheme involving privatized military housing. According to the U.S. Department of Justice, employees falsified maintenance and resident-satisfaction information between approximately 2013 and 2019. This caused incentive-fee submissions to falsely indicate that performance objectives had been met and contributed to unnecessary delays in resolving maintenance problems affecting military families. The subsidiary was sentenced to pay more than $33.6 million in criminal fines and more than $31.8 million in restitution, totaling more than $65 million. This record concerns the conduct of Balfour Beatty Communities, a Balfour Beatty group subsidiary, rather than every part of Balfour Beatty plc. Source / proof: U.S. Department of Justice: https://www.justice.gov/archives/opa/pr/justice-department-announces-global-resolution-criminal-and-civil-investigations-privatized
Record details
- Category
- Corporate Misconduct
- When it happened
- 2013–2019
- Status
- Resolved (December 22, 2021)
- Severity
- high
- Added to Rotten Company
Source
No source document is attached to this record. It was approved under our moderation guidelines.