Accounting giant pays $42 million to settle dispute over travel expenses
Federal task force had alleged that PricewaterhouseCoopers overcharged agencies.
The accounting and consulting giant PricewaterhouseCoopers agreed to pay the government $41.9 million in response to allegations that it defrauded agencies by inflating its travel expenses. PWC did not admit wrongdoing under the settlement.
A task force including the Justice Department Attorney's Office for the Central District of California and the Army's Criminal Investigation Division determined that PWC had overcharged the government for travel expenditures that were reimbursed through contracts with federal agencies. According to the task force, PWC received rebates from credit card and travel companies, but still charged the government for the full amounts.
PWC spokesman David Nestor said the company changed the policy that "gave rise" to the cost problems in 2001. The settlement involves charges from 1990 to 2003.
A retired PWC partner, Neil Roberts, filed the case in 2000 under the False Claims Act. Roberts could receive up to $10.4 million under federal whistleblower statutes.
The U.S. Agency for International Development said $3.36 million of the settlement related to USAID contracts. The Defense, Education and Justice departments and the Environmental Protection Agency were also among the agencies that PWC allegedly overcharged.
"This multiagency investigative effort and the ensuing result should serve notice to those who would attempt to defraud the government on a large scale," said Bruce N. Crandlemire, USAID's acting inspector general.
In 2003, PWC paid $54.5 million to settle allegations regarding travel expenses with corporate clients.
"People assume there's this tremendous about of accounting that goes on, but in fact it's amazing how asleep at the wheel things are," said Patrick Burns, spokesman for Taxpayers Against Fraud, a Washington-based nonprofit group.