A mainland construction company has paid $135,000 as part of a settlement agreement with the federal government in a St. Croix civil fraud case dating from 1991.
U.S. Attorney James Hurd Jr. said Monday that Hibbitts Construction Inc. of London, Ky., and the U.S. Department of Justice had settled the case under the False Claims Act.
The government had charged that Hibbitts submitted false and inflated cost information during its negotiations with the U.S. Army Corps of Engineers to obtain a contract for the removal and disposition of asbestos-contaminated material from the Paradise Mill Housing community.
Hurd said the Corps relied upon the information submitted by Hibbitts in determining the final contract.
Hibbitts agreed to settle the case by paying $135,000 to the federal government. The amount consists of a $5,000 fine, double damages in the amount of $118,000 and interest of $12,000.
