R & J 123 Inc. of Georgia, the successor company to East Coast Fruit Company, Inc. of Georgia, has settled allegations that the company violated the federal False Claims Act by overbilling the government for fruits and vegetables. The government contractor will pay a hefty amount in connection with the matter.
The former East Coast Fruit Company – based in Jacksonville, Florida – contracted to supply fruits and vegetables from the company’s distribution center in Savannah, Georgia to the Department of Defense’s (DOD) facilities in South Carolina. Overcharging on military contracts is one of the most common types of fraud addressed by the federal False Claims Act. From June through December, 2007, alleged the government, the produce supplier bilked DOD by submitting inflated invoices for payment under the contract.
For the full story, go to the Department of Justice Press Release.