Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

NASA vehicles maintenance contractors in federal fraud lawsuit

Published 09/02/2015, 05:54 PM
© Reuters. Tourists take pictures of a NASA sign at the Kennedy Space Center visitors complex in Cape Canaveral, Florida

ORLANDO, Fla. (Reuters) - Two contractors hired to manage NASA's vehicle fleet at the Kennedy Space Center defrauded the agency of at least $387,000 for unnecessary tire replacements, according to a lawsuit filed Wednesday by federal prosecutors in Florida.

The complaint accuses URS Federal Services Inc of Maryland, owned by the global management services firm AECOM Technology Corp, and its subcontractor, Yang Enterprises of Florida, of systematically defrauding the government between 2009 and 2015 by filing more than 1,000 claims for undocumented and unreasonable early replacement of car tires.

A spokesman for AECOM said in an email that the company was disappointed by what it called "an unwarranted lawsuit against URS."

He added URS "will defend itself vigorously against these allegations."

Yang did not immediately respond to requests for comment.

URS Federal Solutions, based in Germantown, Maryland, holds a $1.4 billion services contract at Kennedy Space Center, and subcontracted management of the 400-vehicle fleet to Yang, according to the lawsuit.

The lawsuit brought under False Claims Act was filed in U.S. District Court for the Middle District of Florida and seeks "treble damages" for the government.

In one example, URS billed the government $1,800 to replace the tires six times within 27 months on one vehicle. Some of the tires had fewer than 5,000 miles of use on them, according to the lawsuit.

The case is USA v URS Federal Services, Inc and Yang Enterprises, 15-CV-1429-Orl-31 DAB

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.