According to The State, a HHG carrier has been accused of bilking millions of dollars from the government.
Covan World-Wide Moving, and its affiliate, Coleman-American Moving Services, have had a contract with the U.S. government to move military personnel’s personal property since 2007.
The U.S. Attorney’s office alleges Coven “systematically falsified weight certificates, shipping records and invoices by increasing shipment weights,” the lawsuit said.
According to the lawsuit, Coven is accused billing the government $723 million in service since 2009, however, the lawsuit does not state how much of the $723 million resulted from false billing.
“But, the lawsuit asserts that of one group of shipments reweighed by the government, “nearly 80 percent” were billed in excess of their actual weight,” The State reported.
In addition, the lawsuit states Coven and Coleman-American management advised employees to falsify weights and trained the employees on how to cover up their actions.
The lawsuit was spurred by a whistleblower complaint. On of the employees allegedly uncovered the fraudulent billing and took evidence to the U.S. Attorney’s Office.
Coven attorneys maintain the company’s innocence.
“We believe the allegations are without merit, and we plan on vigorously defending them,” said Columbia attorney Greg Harris, who is local counsel, working with trucking company lawyer Jim Wyrsch of Kansas City, Mo. The companies are privately held.
“We think, ultimately, we’ll be successful,” Harris said.
Follow this link to The State for more information.