Government accuses military moving company of fraud
http://hamptonroads.com/2014/01/government-accuses-military-moving-company-fraud
Government accuses military moving company of fraud
By Meg Kinnard
The Associated Press
© January 22, 2014
COLUMBIA, S.C.
A company that handles moves for some military members in South Carolina and Georgia is being accused of inflating costs and overbilling the federal government, allegations that could potentially result in millions of dollars in penalties and fines.
Covan World-Wide Moving Inc., and an affiliate, Coleman American Moving Services, Inc., move soldiers to and from South Carolina's Fort Jackson and Georgia's Fort Gordon, according to the lawsuit.
The companies are paid on the weight of the shipments they handle. According to the lawsuit, initially filed in 2012 but only unsealed last month, Covan and Coleman inflated the net weight of the shipments gross weight of the packaged belongings, minus the weight of shipping crates and then sent the exaggerated invoices to the federal government.
Relying in part on information from several Coleman employees acting as whistleblowers, the U.S. Department of Justice said the falsified paperwork sometimes resulted in billing the government for thousands of excess pounds.