Defense Contractor Agrees to Pay $600,000 to Settle False Claims Act Allegations

NEWARK, N.J. – U.S. Attorney Philip Sellinger announced today that a defense contractor based out of Killeen, Texas, will pay $600,000 to resolve allegations that it improperly billed for services that it did not perform. 

The settlement resolves allegations that Solution One Industries Inc. made false claims in conjunction with a contract awarded to Solution One by the U.S. Air Force. Solution One contracted to support the 421^st Combat Training Squadron based out of Joint Base McGuire-Dix-Lakehurst in New Jersey by performing different tasks under specific contract line items, on an as-needed basis. The settlement resolves allegations that from December 2017 through June 2019, Solution One billed for tasks that it did not perform, including providing backup power and providing briefings to military personnel. 

U.S. Attorney Sellinger credited the U.S. Department of the Air Force Office of Special Investigations, under the direction of Brig. Gen. Amy S. Bumgarner, with the investigation of the allegations.   

The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.