Kuwaiti company agrees to pay $95 million in fraud case

A Kuwaiti logistics company has agreed to pay $95 million to resolve allegations that it inflated prices and defrauded the U.S. government for contracts to feed American troops in Iraq, Kuwait and Jordan.

The Justice Department announced the settlement involving Agility Public Warehousing on Friday. The company also agreed to plead guilty to misdemeanor theft of government funds.

Federal prosecutors said in an indictment that Agility manipulated a complex funding formula to defraud the government of at least $68 million. The indictment said the company provided false invoices and statements to a logistics center, bought high-priced food items and then knowingly inflated prices.

And it said the company received rebates and discounts from vendors that it did not pass to the government as required by contract.

The company also inflated fees by asking vendors to manipulate the way the products were packed,…

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