Construction Law

False Claims lands Engineer in jail

By Werner Sabo

In United States v. Vitillo, 490 F.3d 314 (C.A.3 (Pa.), 2007), an engineer was sentenced to 36 months' imprisonment for violation of 18 U.S.C. Sec. 666, which prohibits an "agent" of a local governmental agency that receives more than $10,000 in federal funds from stealing from that agency property valued at more than $5,000. The engineering firm was also fined more than $300,000.

The engineer and his firm provided consulting engineering and construction management services to a regional airport authority which received federal funding  for a terminal expansion project. The engineer billed at hourly rates. The trial evidence indicated that the firm created fraudulent invoices for work not performed.

Of interest is that this engineer was an independent, outside contractor. The court agreed with the prosecutors that this federal statute could be used against consulting engineers and contractors who overbill the government. Anyone who performs work for a governmental entity and who commits fraud in billing is subject to federal criminal prosecution.

Full post as published by Construction Attorney Blog on August 30, 2007 (boomark / email).