Update:
Cases against two unrelated parties accused of violating the False Claims Act by submitting fraudulent per diem receipts to the Department of Energy at the Savannah River Site have both reached settlements, according to the U.S. Attorney's Office.
A case against Southern Recruiters & Consultants Inc., alleging that the Aiken recruiting firm submitted approximately $19,000 in fraudulent per diem expense claims for a temporary employee, was settled, with the firm agreeing to pay over $47,000, according to assistant U.S. attorney James Leventis.
The company was responsible for providing temporary skilled workers to SRS and first ensuring that the workers were eligible for per diem benefits before submitting any invoices for reimbursement.
"Southern Recruiters knowingly submitted a fraudulent housing lease in support of the worker's per diem eligibility, in violation of the False Claims Act," a press release from the U.S. Attorney's Office stated.
The company allegedly claimed that the worker, whom the U.S. Attorney's Office will not name, was incurring dual housing expenses when he was in fact living at his parent's home.
The U.S Attorney's Office believes that 11 false claims were made between May 2009 and March 2010, Leventis said, adding that it is possible that more than one worker was involved; however, only one employee was discussed in the case.
When called for comment, Southern Recruiters & Consultants Inc. President Ray Fehrenbach confirmed the settlement but said it does not mean the company admits to the charges against it.
"We essentially paid it to avoid going to court and having high court costs, but that doesn't mean that we agreed with their allegations," Fehrenbach said.
A separate case against Robert Gisiner, a Louisiana structural designer who worked as a subcontract employee at SRS and submitted more than $7,000 in fraudulent per diem receipts, was settled for just over $20,000, Leventis said.
Gisiner obtained a blank invoice sheet and was creating fraudulent per diem receipts over a seven-month period between April 2010 and October 2010, Leventis said, and the false invoices inflated the amount Gisiner paid for rent and other expenses until the scheme was discovered.
A portion of the per diem funds paid to Gisiner were funded through the American Recovery and Reinvestment Act, according to the U.S. Attorney's Office.
If the cases had gone to trial, the False Claims Act would have entitled the government to triple damages, in addition to civil penalties.
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