Kuwaiti Supply Company Pays $95 Million

In May, logistics supply company Agility (aka Public Warehouse) and its affiliate, The Sultan Center, agreed to pay $95 million to settle a False Claims Act suit related to overcharging the U.S. Government on $8.5 billion in Iraq War food supply contracts. The contractual claims involved contracts valued at up to $249 million, and the fraud involved routine and intentional overcharging for fruit and vegetables, the pocketing of contractually owed rebates to the federal government under massive “Prime Vendor” contracts to supply food to U.S. troops in Iraq, Kuwait, and Jordan between 2003 and 2010. Agility had previously paid a small criminal fine in relation to the same fraud.

The case was initiated by whistleblower, and former Agility business partner, Kamal Mustafa Al-Sultan, and filed in November 2005.  The U.S. Government suspended Public Warehouse and The Sultan Center and nearly 300 of their officers, directors, employees, subsidiaries and affiliates from contracting. Raymond Moss, Mr. Al Sultan’s lawyer, noted that “This is one of the largest military procurement fraud cases in the history of the False Claims Act.”

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