(RTTNews) - Balfour Beatty Communities, U.S. subsidiary of Balfour Beatty plc (BBY.L), has pleaded guilty and agreed to pay more than $65 million in fines and restitution for defrauding U.S. Military.
Balfour Beatty Communities, one of the largest providers of privatized military housing to the U.S. Armed Forces, said it reached a resolution with the U.S. Department of Justice. The resolution resolves the DOJ's criminal and civil investigations into specific performance incentive fees improperly claimed by Communities between 2013 and 2019 related to maintenance work at certain United States military housing installations.
As per the terms of the resolution, the company's subsidiary has pleaded guilty to one count of fraud and has agreed to the appointment of an independent compliance monitor for a three-year period.
Balfour Beatty Communities will pay a total resolution amount of $65.4 million comprising about $33.6 million in penalties and $31.8 million in restitution.
Balfour Beatty Communities also entered into a False Claims Act settlement with the United States to resolve its civil liability for $35.2 million. The amounts paid under the civil settlement will be credited against the amounts owed under Balfour Beatty Communities' criminal plea.
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