Two Virginia Contracting Companies Agree To Settle Kickback Cases - US Justice Dept.

WASHINGTON (Pakistan Point News / Sputnik - 24th September, 2021) Two companies based in the US state of Virginia have agreed to pay more than $1.1 million to settle claims that they sought and took financial kickbacks they were not entitled to, the Justice Department said in a release on Thursday.

"Two Virginia-based companies agreed to pay a combined $1,174,584 to settle allegations that they solicited and received kickbacks in connection with Federal government contracts reserved for '8(a)' small businesses," Acting US Attorney for the Eastern District of Virginia Raj Parekh said in the release.

Index Systems in Fairfax and its president Chinna Nemelidinne agreed to pay $1,010,084 to settle claims under the Anti-Kickback Act and False Claims Act and Capital Consulting Group (CCG) in Arlington agreed to pay $164,500 to settle claims under the Anti-Kickback Act, the release said.

"According to the US allegations, in 2018, Index and CCG agreed that Index would use its 8(a) certification to bid on a government contract on which CCG was not eligible to bid. Index and CCG allegedly agreed to subcontract all the work on that contract to CCG in exchange for a 'fee,'" the release added.

The United States also alleged that, between 2018 through 2020, Index had a similar kickback arrangement in place with Sage Consulting Group, Inc. (Sage), in connection with three federal 8(a) set-aside contracts, according to the release.