Environmental Remediation Contractor to Pay $2.72 Million to Resolve Bid-Rigging and Kickback Claims

The Department of Justice has announced that Sevenson Environmental Services Inc., an environmental remediation firm based in Niagara Falls, New York, has agreed to pay more than $2.72 million to resolve allegations that it violated the False Claims Act and the Anti-Kickback Act by accepting kickbacks, rigging bids, and passing inflated charges to the Environmental Protection Agency in connection with work performed at the Federal Creosote Superfund Site in Manville, New Jersey. Sevenson was the prime contractor responsible for the cleanup of the Federal Creosote Site.

The settlement resolves allegations that Sevenson solicited and accepted more than $1.6 million in kickbacks from six companies in exchange for the award of subcontracts for work at the Federal Creosote Site.  It also resolves allegations that Sevenson conspired with the subcontractors to pass the majority of those kickbacks to the EPA and  conspired with one subcontractor to pass additional inflated charges for soil disposal to the EPA.

For more information, see the DOJ release.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
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