Hurricane Katrina Contractor Settles with U.S. Government for $4 Million

A Virginia based disaster relief company and its partners will pay the U.S. government $4 million to settle a False Claims complaint alleging the company accepted payment for work which was not completely performed based on a contract with the Department of Homeland Security.

The company, Lighthouse Disaster Relief and its partners Gary Heldreth and Kerry Farmer were hired to help with rescue and recovery efforts by building and staffing a base-camp to house first responders after Hurricane Katrina. The contracting company and partners were also accused of making false statements to receive payments early. The contract stipulated the base was to shelter and feed 1,000 relief workers, yet never supported more than 400.

The investigation was conducted by the U.S. Attorney’s Office for the Middle District of Louisiana, the Civil Division of the U.S. Department of Justice and was assisted by the Office of Inspector General of the Department of Homeland Security.