Following Agility’s criminal indictment by a grand jury, on November 16, 2009, DLA suspended Agility from government contracting due to the criminal indictment. This suspension was subsequently extended to Agility’s more than 300 affiliated entities. As a result, Agility and its affiliates have foregone the opportunity to obtain billions of dollars in revenue associated with U.S. Department of Defense contracts since 2009.
Although Agility’s suspension will be lifted, it will be required to use an independent monitor. Moreover, the agreement requires Agility to maintain an ethics and compliance program with a number of detailed requirements.
Since 2006, Agility has filed a number of contract claims seeking additional payments of $249 million alleging that DLA owed Agility payments for its performance under a series of military contracts, which DLA contested in protracted litigation. Today’s agreement requires Agility to release all claims against DLA related to the contracts.
The resolution of the criminal and civil matters in the U.S. District Court for the Northern District of Georgia were the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice’s Civil Division. The claims resolved by the settlements are allegations only, except to the extent the conduct was admitted as part of the defendant’s guilty plea, and there has been no determination of liability.
The criminal and civil cases were investigated by the DCIS, U.S. Army’s Criminal Investigative Command’s MPFU, Defense Contract Audit Agency, and the FBI.
Assistant U.S. Attorneys Steven D. Grimberg, Glenn D. Baker, Nathan P. Kitchens, and Kamal Ghali prosecuted the criminal case. Assistant U.S. Attorney Amy Berne prosecuted the civil case.
(Source: US Department of Justice)