Whitsons Culinary Group, a food services provider who supplied school lunches for multiple districts throughout New York State, settled False Claims Act allegations with the New York Attorney General’s office.  According to the Attorney General, Whitsons overcharged the state of New York by failing to pass along rebates that it received from its food vendors to the school districts which employed its services.  This scheme allegedly defrauded New York State of over $800,000.

The $1.6 million settlement will be distributed amongst the school districts and entities which were defrauded.

Assistant Attorney General John Carroll recently testified before the New York Senate Subcommittee on Contracting Oversight regarding a similar $20 million settlement with the food service provider Sodexo last year.  He stated that several other food service companies were cooperating with the Attorney General’s office in similar cases.