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KBR sued by U.S. for kickbacks and false claims related to Iraq

The government has filed a complaint against Kellogg, Brown & Root Services and Kuwaiti companies La Nouvelle General Trading & Contracting and First Kuwaiti Trading for submitting false claims in connection with KBR’s contract with the Army to provide logistical support in Iraq, the Department of Justice announced. Allegedly, KBR made claims to the government, knowing them to be false, under a contract with the Army to provide wartime logistical support, known as the Logistics Civil Augmentation Program III. The award of LOGCAP III paved the way for the company to become a critical source for logistical support services in Iraq, the DOJ said. Some of the allegations contained in the government’s complaint were originally alleged in a lawsuit filed in a federal court in Houston by a whistleblower, Bud Conyers, under the qui tam provisions of the False Claims Act.