A Maryland-based moving company has been targeted in a False Claims Act lawsuit brought by Anthony Head, a former vice president of moving services. The whistleblower suit, first filed in 2007, charged that Kane Company underpaid its workers in violation of federal contracts while falsely claiming to the government that the firm was in compliance.
The federal complaint, which was recently unsealed, charges that Kane and two subsidiary companies, Office Movers and Office Installers, had been awarded many contracts requiring government contractors to pay workers the “prevailing wage” set by the secretary of labor, along with certain benefits. From 1998 to 2007, claims the suit, the named companies systematically failed to comply with the minimum pay and benefits requirements in many of their government contracts. The alleged failures involved contracts with many government entities, including the Department of Health and Human Services, the Department of Defense, the General Services Administration and the U.S. House of Representatives. Had the Kane companies not pledged to meet the Secretary of Labor’s standards, they would not have been awarded the contracts in the first place.
The complaint also alleges that Kane, the company’s chief executive officer, knew about the alleged fraudulent practices, but took no action to stop them. Kane served as the chairman of the Maryland GOP for four years, from 2002 to 2006.
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