Flooring Company Settles Allegations it Paid Bribe for Government Work

          The nationwide flooring company Spectra Contract Flooring with an office in Tukwila, Washington, has agreed to pay $133,718 to settle allegations it improperly provided kickbacks to a defense contractor, announced U.S. Attorney Brian T. Moran.  The civil settlement comes after a criminal investigation, and false tax return conviction, of an employee of a government defense contractor who accepted benefits from Spectra.  Spectra is a wholly owned subsidiary of Shaw Industries Group Inc.  The criminal case, U.S. v Meisner, was resolved in May 2017.  In the settlement announced today, Spectra does not admit any wrongdoing but chooses to resolve the claims.

            According to records filed in the criminal case and the settlement agreement, in 2009, Spectra was one of the subcontractors working on a seismic upgrade at the Delta Pier Support Facility at the Bangor Submarine Base near Silverdale.  The contractor leading the Bangor job was Cherokee General Corporation, a subsidiary of Doyon Government Group, headed by Brent S. Meisner.  Meisner was in the midst of a remodel of his Gig Harbor, Washington, residence.  Invoices submitted by Spectra reveal that the company billed the Navy for the work at Meisner’s residence under the seismic upgrade contract.  Meisner paid nothing for the flooring services provided at his home.  As is allowed by law in False Claims cases, Spectra is settling the matter for three times the cost of the false billing: $133,718. 

            In May 2017, Meisner was sentenced to 18 months in prison.

          "The announced settlement is representative of the law enforcement community's dogged efforts to hold accountable those who engage in unethical business practices that stifle fair competition and ultimately result in a loss to the American taxpayer," said Bryan Denny, Special Agent in Charge, Western Field Office, Defense Criminal Investigative Service (DCIS).  "As in this case, any unscrupulous actions by government contractors and subcontractors that tarnish and corrupt the integrity of the defense procurement process will be reviewed and vigorously investigated by DCIS and its law enforcement partners."

            The False Claims Act allegations were investigated by the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), Army CID Major Procurement Fraud Unit and the Internal Revenue Service Criminal Investigation (IRS-CI).

            The civil settlement was negotiated for the government by Assistant United States Attorney Kayla C. Stahman.