WEST VIRGINIA (LOOTPRESS) โ Thompson Construction Group Inc. has agreed to pay $191,070 to settle allegations that it violated the federal False Claims Act by submitting false claims for federal disaster recovery funds and falsely certifying that homes it built met contract requirements, Acting U.S. Attorney Lisa G. Johnston announced.
The case stems from the 2016 catastrophic flooding that devastated central and southern West Virginia, destroying thousands of homes and leaving at least 23 people dead. Following a presidential disaster declaration, Congress allocated Community Development Block Grant โ Disaster Recovery (CDBG-DR) funds through the U.S. Department of Housing and Urban Development (HUD) to help rebuild homes for low-income residents.
Thompson Construction was awarded contracts to reconstruct flood-damaged homes, with specific requirements for water management systems, including crawl space drainage and sump pumps to protect against future flooding. However, an investigation revealed the company failed to install these required systems while falsely certifying compliance and receiving federal funds.
As part of the settlement, Thompson will pay $95,535 in restitution and $95,535 in double damages under the False Claims Act.
โWest Virginia families relied on Thompson Construction to rebuild their homes, only to be left vulnerable to future flooding,โ said Acting U.S. Attorney Johnston. โThis settlement ensures accountability for misusing taxpayer funds.โ
HUD-OIG Special Agent-in-Charge Shawn Rice condemned the companyโs actions, stating, โThompson Construction diverted federal resources meant for flood victims to line their own pockets.โ
The West Virginia Commission on Special Investigations played a key role in uncovering the fraud, collecting photographic evidence and interviewing homeowners and contractors. Commission Director Rick Eplin praised the partnership with HUD-OIG and the U.S. Attorneyโs Office in securing the resolution.
Authorities remain committed to protecting federal funds and holding accountable those who attempt to exploit disaster recovery efforts.
