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Spartan Motors Pays $1.7 Million for False Claims Act Violations

On December 29, 2008, the Justice Department announced that Spartan Motors and its subsidiary, Spartan Chassis have agreed to pay the United States $1.7 Million to resolve allegations that it paid kickbacks to an employee of Force Protection Inc.  In the complaint, the United States alleged that Spartan paid the Force Protection employee approximately $100,000 in exchange for Spartan to receive a subcontract to provide chassis for armored vehicles for the U.S. Military.

The case was investigated and prosecuted as part of the National Procurement Fraud Initiative.  In October 2006, the Deputy Attorney General announced the formation of a National Procurement Fraud Task Force designed to promote the early detection, identification, prevention, and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.  For more information about the False Claims Act, click here.

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