CHARLESTON, W.Va. — A South Carolina construction company has agreed to pay the United States $191,070 to resolve allegations that it violated the federal False Claims Act.
Thompson Construction Group Inc., of Sumter, South Carolina, allegedly violated the act by submitting false claims for payment from federal disaster recovery grant funds. The company did so by falsely certifying that homes they constructed were compliant with contract conditions.
Thompson was awarded several contracts after the devastating floods that his central and southern West Virginia in 2016. The flood killed 23 people and caused an estimated $1.2 billion in damages.
The contracts awarded to Thompson included specific requirements for water management for homes in a flood plain to prevent similar flooding in the future. These requirements included the installation of crawl space drainage systems and sump pumps. These conditions were detailed in the pre-bid construction.
While Thompson did complete the construction of the homes, investigators later learned the crawl space drainage systems and sump pumps were never installed.
Thompson will pay $95,535 in restitution and $95,535 in double damages pursuant to the False Claims Act.