July 01, 2008
The Los Angeles Department of Water and Power has filed a False Claims Act suit against a construction and engineering firm, accusing it of defrauding the utility. The suit, filed in federal court in Los Angeles, alleges that CH2M Hill conspired to defraud DWP by artificially inflating the value of work done by the company and its subcontractors. The suit alleges a wide variety of overcharges, including impermissible and overstated mark-ups.
According to an article in the Los Angeles Times, the agency is seeking at least $13.5 million, plus punitive damages.