U.S. based multi-modal transportation and logistics company Liberty Global Logistics LLC (LGL) has paid the United States TWO HUNDRED NINETY-FOUR THOUSAND EIGHT HUNDRED DOLLARS ($294,800) to settle claims that it violated its contract with United States Transportation Command (USTRANSCOM) by falsely billing the United States for convoy security services that were never actually provided, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
USTRANSCOM contracted with LGL for the transportation of U.S. military cargo from the United States to various military outposts in Afghanistan. The contract required LGL to comply with Afghanistan law, which mandates the purchase of extra security services for cargo convoys moving along certain trucking routes within Afghanistan. Those services were reported to have been provided by the Afghan Public Protection Force (APPF) – an arm of the Afghanistan government – and a portion of the security costs were reimbursed to LGL by the United States under the contract.
USTRANSCOM later discovered that on 20 occasions in 2016 and 13 occasions in 2017, certain LGL shipments moved without APPF security services, in violation of the contract.
Under the terms of the settlement agreement negotiated by the parties, LGL agreed to withdraw its outstanding claims for additional reimbursement associated with APPF costs for the movements at issue in 2016, and further agreed not to seek any additional reimbursement from USTRANSCOM for the movements at issue in 2017.
As a result of the investigation, LGL has already implemented a strengthened internal compliance program to monitor, identify and prevent inaccurate billings. The company agreed to maintain that strengthened program as part of the settlement agreement.
This matter was investigated by USTRANSCOM, the Defense Criminal Investigative Service, United States Army Criminal Investigation Command, the Naval Criminal Investigative Service, and the Office of the Special Inspector General for Afghanistan Reconstruction and was handled by Assistant United States Attorney Nathan D. Stump.
LGL was cooperative in the investigation.