Seven South Korea-based companies have agreed to pay $3.1 million to resolve allegations they violated the False Claims Act by engaging in a bid-rigging conspiracy that targeted U.S. Army Corps of Engineers (USACE) contracts, officials announced Wednesdayu.
The contracts were for construction and engineering work on U.S. military bases in South Korea, according to authorities.
The seven companies are Korea Engineering Consultants Corporation; Yul Lim Construction Co. Ltd.; Shin Woo Construction & Industrial Co. Ltd.; Seongbo Const. Ind. Co. Ltd.; Wooseok Construction Co. Ltd.; Yuil Engineering and Construction Co.; and Seokwang Development Co. Ltd.
The companies have agreed to each pay an equal share of the settlement amount.
The United States alleged the seven companies conspired to suppress and eliminate competition during the bidding process on 15 USACE contracts awarded between 2016 and 2019, officials stated.
The United States further alleged that as a result of this anticompetitive conduct, the USACE paid substantially more for services performed under the contracts than it would have had there been competition among the bidders.
“The U.S. Army Criminal Investigation Division (Army CID) will hold accountable those who defraud the U.S. government, no matter where they are,” said Special Agent in Charge Scott Moreland of the Army CID’s Major Procurement Fraud Field Office. “We appreciate the steadfast partnership shown by our fellow federal agencies to bring this scheme to a halt.”
Assistant Director in Charge Kristi Johnson of the FBI’s Los Angeles Division said: “Such activity cheats American taxpayers while harming competitive markets. Simply put, collusion on contracts will not be tolerated; and this case sends a clear message that the FBI and its partners will hold individuals and corporations accountable when they violate federal statutes.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the Army CID Major Procurement Fraud Unit; the FBI’s International Contract Corruption Task Force; and DCIS.