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Press Release

United States Settles False Claims Act Allegations Against Defense Contractor For $300,000

For Immediate Release
U.S. Attorney's Office, Middle District of Florida

Jacksonville, FL – United States Attorney Maria Chapa Lopez announces that the United States has settled allegations that Pentad Corporation failed to reimburse the Department of the Navy for meals consumed by its employees at Naval Station Guantanamo Bay. The allegations resolved included liability under the False Claims Act (FCA).

Pentad Corporation is a defense contractor that provides dining-related services at various locations, including at Naval Station Guantanamo Bay. Pentad’s contract with the Navy allowed Pentad employees to eat at Navy dining facilities, but required that Pentad reimburse the Navy for meals its employees consumed. From December 2013 to December 2016, Pentad failed to reimburse the Navy for these meals, causing the Navy approximately $150,000 in damages. The settlement compensates the Navy for Pentad’s reimbursement failures.

“Protecting the integrity of services provided to our armed forces is a high priority for our office,” said U.S. Attorney Chapa Lopez. “We will work vigorously to ensure that defense contractors fulfill their contractual obligations so that our military can accomplish its mission.”

“This settlement is the result of tireless efforts by the Defense Criminal Investigative Service and its law enforcement partners to ensure integrity and compliance in all Department of Defense programs,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS investigations focus on fraud, waste, and abuse of taxpayer dollars in all DoD procurements for goods and services.”

Special Agent in Charge Michael Wiest stated “Fraud is not a victimless crime. In all its forms fraud siphons time, money, and resources from America’s warfighters. NCIS is committed to working with our partner agencies to help hold accountable those who put personal greed above their responsibilities to the Navy and nation.”

This case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and Assistant United States Attorney Shea Gibbons.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

Updated August 6, 2018

False Claims Act