Two Energy Companies Settle DOJ Tax Fraud Allegations

Posted on August 27th, 2010 No Comments

Two energy companies, Dominion Resources Inc. and Marathon Oil Corp., agreed to pay $2.2 million and 4.7 million, respectively, to settled federal allegations they knowingly underpaid royalties from federal and Indian leases.

According to a statement release Friday by the United Stated Department of Justice, the two companies separately violated the False Claims Act by underpaying royalties on natural gas. The settlement resolved contentions that the pair manipulated reports to reduce royalty payments.

“We are committed to protecting public and Indian lands and to ensuring that companies with leases to take natural gas from those lands pay their fair share of royalties,” said Assistant Attorney General Tony West.

The settlements stem from a whistleblower lawsuit filed by Harold Wright. Because he is deceased, Wright’s heirs will receive a $1.8 million share of the settlement.

If you are a whistleblower with information about fraud on the government, you may be able to bring a Qui Tam lawsuit under the False Claims Act. Please contact the Qui Tam Lawyers of Tycko & Zavareei, LLP, at 202-973-0900 today.

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