Prosecutors Seek Further Charges in Agility Food Fraud

Federal prosecutors are circling new charges against The Public Warehousing Co. (a/k/a Agility), a Kuwaiti military food supplier accused of defrauding the U.S. of at least $68 million.

According to the 2009 charges, the Kuwaiti company allegedly provided false statements and invoices and knowingly inflated prices since 2003. The company is also accused of failing to pass on rebates and discounts to the U.S. government, as is contractually obligated. Lastly, the lawsuit claims Agility had vendors manipulate product packaging, allowing the firm to bill the government twice as much as it should have.

The case has been mired in legal battles since 2009, initially over whether or not Agility was ever correctly served. Though a magistrate judge initially ruled in the firm’s favor, the decision was overturned this March. Currently, prosecutors are attempting to subpoena Dan Mongeon, an ex-Army major general serving as chief executive of an Agility unit.

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