CORPORATE CRIME REPORTER
Age
Refining to Pay $9 Million to Settle False Claims Act Case
20 Corporate Crime Reporter 32(3), August 3, 2006
Age Refining Inc., the company's former affiliate, Age Transportation, and Albert
Gonzalez, the founder and chairman emeritus of Age Refining will pay the United
States $9 million to settle a False Claims Act lawsuit.
The settlement resolves allegations that San Antonio-based Age Refining falsely
certified its compliance with the provisions of the Historically Underutilized
Business Zone (HUBZone Act of 1997) program in order to entitle the company
to a price evaluation preference in connection with bidding for JP-8 jet fuel
and other contracts with the Department of Defense.
The HUBZone Empowerment Contracting Program was created to stimulate economic
development and create jobs in urban and rural communities by providing federal
contracting preferences to small businesses.
These preferences go to small businesses that obtain HUBZone certification in
part by employing staff who live in a HUBZone.
The company must also maintain a "principal office" in one of these
specially designated areas.
Age Refining has been decertified as a HUBZone company by the Small Business
Administration.
Federal officials opened an investigation in response to a whistleblower action
brought by James Carrington, a former employee of Age Refining.
Under the False Claims Act, private individuals can bring whistleblower actions
for fraud on behalf of the United States, and collect a share of any proceeds
recovered by the suit and attorney fees.
As a result of the settlement, Mr. Carrington will receive $1.7 million.
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