EGL pays $750K to settle Justice Department case (KBR)

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EGL pays $750K to settle Justice Department case (KBR)
By DONNA BORAK AP Business Writer © 2008 The Associated Press
Nov. 4, 2008, 1:39PM
http://www.chron.com/disp/story.mpl/ap/business/6094034.html


WASHINGTON — Logistics provider EGL Inc. will pay $750,000 to the U.S. government to settle charges that it paid kickbacks to prime contractor KBR Inc. to perform services in Iraq and Kuwait, the Justice Department said Tuesday.

Houston-based EGL allegedly provided various meals, sporting event tickets and other gifts to KBR between March 2003 and March 2005, according to the department. The gratuities were paid while the company was working under a subcontract with KBR, formerly a division of Halliburton Co., which was once headed by Vice President Dick Cheney.

Both EGL and KBR performed work under the Army's Logistics Civil Augmentation Program, or Logcap, which provides a range of services including food and shelter for U.S. troops in Iraq and Kuwait. Lawmakers repeatedly have criticized the program and alleged that KBR has abused the terms of its contract and defrauded the government.

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EGL has been accused of overcharging the military before. In August 2006, the company paid the U.S. government $4 million to settle a potential civil claims suit that alleged EGL inflated invoices for military cargo shipments to Iraq under the same KBR subcontract. The same two whistleblowers each received $800,000 as part of that settlement.

EGL also paid $300,000 in June 2007 to settle charges that the firm's agent in Kuwait overcharged the military for rent on shipping containers to Iraq. Vavra and Hyatt received $36,000 in that settlement.

The Defense Criminal Investigative Service and FBI participated in the ongoing investigation, the Justice Department said.

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1. kick

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2. These risks and uncertainties include

KBR Announces Third Quarter Results
Fri. October 31, 2008; Posted: 06:15 AM
http://www.tradingmarkets.com/.site/news/Stock%20News/1985398/

HOUSTON, Oct 31, 2008 (BUSINESS WIRE) -- KBR | Quote | Chart | News | PowerRating -- --Revenue for the nine months ended September 30, 2008 increased 29% over the corresponding period last year

--Business unit income for the first nine months ended September 30, 2008 increased 38% compared to the corresponding period last year

--Operating income in the first nine months of 2008 increased 83% over the first nine months of 2007

--Backlog at the end of September 30, 2008 increased 27% from same period last year

--Corporate general and administrative expense decreased 8% in the first nine months of 2008 compared to the first nine months of 2007

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These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies....