{"id":16999,"date":"2015-11-02T16:54:25","date_gmt":"2015-11-03T00:54:25","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=16999"},"modified":"2015-11-02T17:02:34","modified_gmt":"2015-11-03T01:02:34","slug":"feds-l-a-produce-co-overcharged-for-military-for-fresh-fruits-and-vegtables","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=16999","title":{"rendered":"Feds:  L.A. Produce Co. Overcharged Military for Fresh Fruits and Vegetables"},"content":{"rendered":"<h2 id=\"yui_3_16_0_1_1446505506946_42033\"><span style=\"font-size: 14pt;\">LOS ANGELES<\/span><\/h2>\n<hr \/>\n<p><span style=\"font-size: 14pt;\">A Los Angeles company paid $4 million to resolve civil allegations that it fraudulently overcharged the U.S. military for fresh fruits and vegetables that it supplied to military dining facilities and Navy ships in Southern California, federal officials announced today<\/span><\/p>\n<div><span style=\"font-size: 14pt;\"><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/Coast-Produce-Company.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-17001 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/Coast-Produce-Company.jpeg\" alt=\"Coast Produce Company\" width=\"256\" height=\"256\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/Coast-Produce-Company.jpeg 256w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/Coast-Produce-Company-150x150.jpeg 150w\" sizes=\"auto, (max-width: 256px) 100vw, 256px\" \/><\/a>A whistleblower and industry consultant Kevin Driscol made the allegations against <strong>Coast Produce Co.<\/strong> in a private lawsuit filed in 2008, officials said.<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">Driscoll will receive $920,000 for bringing this case to light through a whistleblower lawsuit, which was adopted by the federal government because it had merit, according to authorities.<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">To resolve the allegations in the lawsuit, Coast paid a $4 million settlement on September 2, and <strong>U.S. District Judge David O. Carter<\/strong> unsealed and dismissed the civil lawsuit on September 17, officials said.<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">As part of a second agreement with criminal prosecutors, Coast Produce Co. will implement various measures to ensure the company complies with its legal obligations.<\/span><\/div>\n<div><\/div>\n<div id=\"yui_3_16_0_1_1446505506946_42034\"><span style=\"font-size: 14pt;\">\u00a0Coast Produce Company\u2019s settlement agreements with the government resolve a civil lawsuit and criminal investigation into allegations that the company violated the federal False Claims Act and obstructed an investigation related to two contracts the company had with the Department of Defense to supply fresh produce to the military in the Los Angeles and San Diego regions.<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">Under its contract with the DoD, Coast Produce allegedly was required to charge only the current prices charged to Coast by its own suppliers for the fruits and vegetables or \u00a0the \u201cdelivered price,&#8221; plus an additional fixed $1.50-per-unit distribution fee that included Coast\u2019s profit. <\/span><\/div>\n<div><\/div>\n<div><strong><span style=\"font-size: 14pt;\">The lawsuit alleged that Coast Produce knowingly overcharged the military on the delivered prices in three ways:<\/span><\/strong><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\"> 1) Instructing two suppliers to provide inflated quotes for produce, which the company then submitted to the DoD as pricing support, while simultaneously instructing the two suppliers to actually bill at their regular lower prices<\/span><\/div>\n<div><span style=\"font-size: 14pt;\"> 2)Charging the DoD more than it paid for bananas and pineapples under long-term fixed-price supply contracts<\/span><\/div>\n<div><span style=\"font-size: 14pt;\"> 3) Submitting artificially high quotes to the DoD \u2013 typically from vendors Coast Product had no intention of buying from \u2013 in order to set a payment rate, but then actually purchasing the produce it supplied at lower prices, and keeping the difference.<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">In relation to the criminal investigation, the U.S. Attorney\u2019s Office on September 2 filed a criminal information against Coast Produce, alleging that the company altered or falsified records. <\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">The information alleged that Coast Produce provided false invoices to the DoD when it requested evidence concerning the prices Coast was paying for produce it provided the military. <\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">The criminal information was filed pursuant to a Deferred Prosecution Agreement, in which the government agreed to defer any criminal case against Coast Produce for a two-year period in return for the company\u2019s agreement to implement various compliance and remedial measures during that period, among other things. <\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">If Coast Produce does not violate the agreement during the 24-month period, the government will not proceed with a criminal case against Coast.<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">\u201cThe agreements with Coast Produce demonstrate that this office will use all criminal and civil tools at its disposal to ensure that contractors who overcharge the United States military are held accountable,\u201d said <strong>U.S. Attorney Eileen M. Decker<\/strong>. \u201cCompanies that supply products and services to our military members should know that our office will aggressively investigate those who seek to unlawfully profit from that relationship.\u201d<\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 14pt;\">There is no allegation that the fruits and vegetables supplied by the company were unsatisfactory in quality. Coast Produce agreed to the civil settlement without admitting any wrongdoing, according to authorities.<\/span><\/div>\n<div><span style=\"font-size: 14pt;\">\u00a0\u00a0<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>LOS ANGELES A Los Angeles company paid $4 million to resolve civil allegations that it fraudulently overcharged the U.S. military for fresh fruits and vegetables that it supplied to military dining facilities&#8230;<\/p>\n","protected":false},"author":1,"featured_media":13046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1863,1605,1862,1616],"class_list":["post-16999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-coast-produce-company","tag-military","tag-u-s-district-court-los-angeles","tag-whistleblower"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Produce Company Overcharged Military for Fruits and Vegetables<\/title>\n<meta name=\"description\" content=\"A Los Angeles company paid $4 million to resolve civil allegations that it fraudulently overcharged the U.S. military for fresh fruits and vegetables that it supplied to military.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=16999\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Produce Company Overcharged Military for Fruits and Vegetables\" \/>\n<meta property=\"og:description\" content=\"A Los Angeles company paid $4 million to resolve civil allegations that it fraudulently overcharged the U.S. military for fresh fruits and vegetables that it supplied to military.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cjnotebook.com\/?p=16999\" \/>\n<meta property=\"og:site_name\" content=\"American Justice Notebook\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AmericanJusticeNotebook\" \/>\n<meta property=\"article:published_time\" content=\"2015-11-03T00:54:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-03T01:02:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/06\/U.S.-Courthouse-Los-Angeles-e1435018436246.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"722\" \/>\n\t<meta property=\"og:image:height\" content=\"452\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Raul\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Raul\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=16999#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=16999\"},\"author\":{\"name\":\"Raul\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#\\\/schema\\\/person\\\/f5521baddca77b521f012298775186c0\"},\"headline\":\"Feds: L.A. 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