The Department of Justice has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and two Kuwaiti companies for violating the False Claims Act and the Anti-Kickback Act in connection with KBR’s contract to provide logistical support to the US Army in Iraq. KBR, a Texas-based engineering, construction, and services firm, was under a contract with the Army to provide wartime logistical support in Iraq, and it performed many of these services through subcontracts awarded to local companies.

According to the government, in 2003 and 2004, KBR employees took kickbacks from Kuwaiti companies, La Nouvelle General Trading & Contracting Co. and First Kuwaiti Trading Co., in connection with the award and oversight of subcontracts. KBR also sought reimbursement for costs incurred under those subcontracts, which were allegedly inflated, excessive, or for goods and services that were grossly deficient or not provided. Three KBR employees have already pled guilty to taking kickbacks.

The kickback allegations were first brought to light by a whistleblower, Bud Conyers, who filed a qui tam lawsuit in federal court in Houston. The government intervened in Mr. Conyers’s case earlier this year.

Read the entire article, “Feds Hit KBR with False Claims Charge”
Read the DOJ press release, “United States Government Sues Kellogg, Brown & Root Services Inc. and Two Foreign Companies for Kickbacks and False Claims Relating to Iraq Support Services Contract”