Siemens Industry agrees to pay $1M for allegedly defrauding federal government over Hamtramck housing contract
(CBS DETROIT) - The subsidiary of Siemens Corporation agreed to pay more than $1 million for allegedly defrauding the federal government under a contract with the Hamtramck Housing Commission.
Federal officials say Siemens Industry Inc. entered into a contract with the Housing Commission in 2011 to install energy efficiency improvement measures at two public housing facilities in Hamtramck.
The company allegedly submitted inaccurate data, which the Housing Commission submitted to the U.S. Department of Housing and Urban Development (HUD), according to a press release.
The report led to the U.S. paying more than it would have. The Housing Commission is a HUD-funded housing authority.
In a settlement, Siemens agreed to pay $1,086,430 to resolve allegations of violating the False Claims Act.
"Federal contractors are expected to deal honestly with federal agencies, even where there are intermediaries between the agency and the contractor," said U.S. Attorney Dawn Ison in a statement. "This settlement demonstrates our Office's commitment to protecting the taxpayers' money in any matter where the government ultimately suffers from misconduct by contractors."