PRIDE Industries has agreed to pay $400,000 to the federal government to resolve a qui tam lawsuit.
According to the whistleblower lawsuit, PRIDE, one of the nation’s largest employers of disabled people, knowingly submitted false claims relating to a maintenance contract at the Fort Bliss Army Base in El Paso, Texas. The contract is part of the Ability One Program, which procures contracts for goods and services that provided employment to disabled people. Under the program, contractors must ensure that 75 percent of all direct labor hours are performed by severely disabled employees.
According to officials with the Justice Department, PRIDE, between 2001 and 2010, employed a large number of temporary, non-disabled workers as part of its maintenance staff, but did not count on their hours as part of its overall ratio, meaning that PRIDE reported false ratio numbers to the National Industries of the Severely Handicapped, which oversees AbilityOne. The department also said PRIDE overcharged the Army by adding costs not allowed under the contract and by charging too much for labor.
PRIDE spokeswoman Audrey Farrington said the company cooperated with the government’s investigation. She added that the company did not admit any liability or guilt as part of the settlement.
If you have information regarding government grant fraud, please contact a Qui Tam Lawyer of Tycko & Zavareei, LLP, by calling 202-973-0900.



