A Michigan manufacturing giant has been slapped with a hefty $5 million tab after feds cracked down on alleged price-gouging tied to an Army contract. Merrill Technologies Group, which calls Saginaw home, stands accused of puffing up costs when it came to assembling upgrades for armored vehicles, in a deal with Uncle Sam's Tank Automotive Command (TACOM).
Legal eagles say Merrill not only bruised the Truth, but they left taxpayers footing a bloated bill. In a subcontract dating back to 2010, Merrill delivered a pitch that was a little too rich, prompting the prime contractor to then hawk an inflated contract to TACOM, as per a statement by the U.S. Attorney's Office for the Eastern District of Michigan. This settlement clamps down on contractors who dip into the national till, triggering government over-payments.
"Government contractors must be completely above board when seeking payment under government contracts," U.S. Attorney Dawn N. Ison railed in her briefing. The settlement is a loud-and-clear message to those cooking the books at the expense of taxpayers, as highlighted by CBS Detroit.
True to form, thievery doesn't pay, at least not for long. A whistle that blew loud thanks to Chad Sibley, the whistleblower who brought Merrill's alleged deceit to light, is set to bank a cool $900,000 from the scrape. Sibley took advantage of the False Claims Act's qui tam provisions, which encourage private citizens to flag fraud on the government's behalf. Merrill, while not officially admitting to any monkey business, has agreed to pony up the dough to make amends, a case handled by Assistant U.S. Attorney Carolyn Bell Harbin, as per the U.S. Attorney's Office.
