A Dallas company that has received millions of dollars in U.S. military contracts has agreed to pay $750,000 to settle allegations it charged taxpayers for work it never did, according to court records.
Crash Rescue Equipment Service, Inc. fraudulently billed the U.S. Air Force and U.S. Marine Corps for overhauling emergency vehicles, according to a lawsuit filed by the U.S. Attorney’s office.
Company attorney Jim King said new owners bought CRES in 2007, discovered the work had not been properly done. and reported it to the government.
"We didn't hide anything," he said. "We said, 'We need to make amends' and we did."
The suit alleges the false claims were submitted from Aug. 2006 to July 2010.
The company, also known as CRES, is located in the 4000 block of West Illinois Avenue.
In its agreement, the company promised to pay the money plus interest over the next five years but did not admit liability.
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CRES started in 1967 maintaining rescue and firefighting equipment at major airports, according to the company’s website.
The website describes the company as “global leaders of heavy equipment remanufacturing in the international aviation industry” but adds it has branched out into other areas including the oil business.
It has received millions of dollars from the U.S. military, according to a website which tracks government spending.
The lawsuit was filed under the False Claims Act.
The agreement between the company and the government said it was reached to avoid litigation and noted it is separate from any criminal investigation that may be underway.
Kathy Colvin, a spokeswoman for the U.S. Attorney’s office in Dallas, would not say whether or not a criminal investigation is ongoing.
