BSF CLIENT SUES LARGE DEFENSE CONTRACTOR

A small, disadvantaged, woman-owned business located in a HUBZone filed a lawsuit today in federal court against major defense contractor Kellogg Brown & Root ("KBR"). The complaint, filed on behalf of Hilda Parker and Parker Products, Inc. alleges that KBR defrauded her company by falsely promising that it would order millions of dollars worth of products to fulfill its prime contract obligations with the Department of Defense. At the same time, according to the complaint, KBR falsely certified to the federal government that it was conducting business with the subcontractor so that it could fulfill government contracting goals. The United States Government, through its procurement policies, accords preference to prime government contractors who agree to employ subcontractors whose businesses qualify as small, disadvantaged, woman-owned businesses, Labor Surplus Area Concerns, and/or business located in a HUBZone.

The lawsuit also alleges that a KBR employee solicited kickbacks in exchange for providing Parker Products with access to potential purchasers of the subcontractor’s products. Federal law prohibits the solicitation or attempted solicitation of kickbacks for the purpose of improperly obtaining or rewarding favorable treatment in connection with a subcontract relating to a prime contract.

For more information about this case or to speak with a business fraud lawyer, please contact info@tbsf-law.com.