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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of California

FOR IMMEDIATE RELEASE
Friday, August 21, 2020

Subcontractor At NASA Ames Field Center To Pay $1.2 Million To Resolve Claims Of Inflated Workers’ Compensation Payments

New Mexico-based Fiore Industries Inc. agreed to pay the United States $1,200,000 to resolve allegations that it caused false claims to be submitted to the government for payment.  The announcement was made today by United States Attorney David L. Anderson and NASA Office of Inspector General Special Agent in Charge Jennifer Bryan.

Fiore is a subcontractor that provide fire protection services at NASA’s Ames field center in Mountain View, Calif.  According to the settlement agreement made public today, the settlement resolves the government’s claims that in 2016 Fiore overcharged the government by seeking hundreds of thousands of dollars in additional payments from NASA based on inflated workers’ compensation rates.  The government claimed that the rates Fiore submitted to justify the additional payments did not account for discounts Fiore knew it would receive but did not disclose to NASA.

“Federal contractors and subcontractors must deal squarely and honestly with the government at all times,” said U.S. Attorney Anderson.  “By signing this agreement, Fiore agrees to account for various deductions to which the government is entitled and also agrees to cooperate with any further investigation into other parties that may be responsible for overcharging.  This agreement protects taxpayers by holding government contractors accountable for their claims practices.” 

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

Assistant U.S. Attorney Sharanya Mohan handled the matter for the government, with assistance from Kurt Kosek.  The settlement is the result of an investigation by the U.S. Attorney’s Office for the Northern District of California and the NASA Office of Inspector General, with significant assistance from other components of NASA.

Updated August 21, 2020