Government Sues Company Contracted to Move Belongings of Deployed Military

Based on allegations of fraud first raised in Augusta, the federal government has sued a company that specializes in moving the belongings of military men and women after two former employees said the business inflated relocation costs and overbilled the Department of Defense.

If the government should prevail at trial and win treble damages possible under the False Claims Act, a judgment could be worth billions of dollars in fines and penalties.

The lawsuit, filed in U.S. District Court in Columbia in April 2012, had been kept under seal until the U.S. Justice Department joined the case in December and filed an amended complaint against Covan World-Wide Moving Inc. and Coleman American Moving Services Inc.

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