Chemonics to Pay $3.1 Million to Resolve Billing Fraud Claims

Chemonics International agreed to pay $3.1 million to resolve allegations that it violated the False Claims Act by submitting fraudulent claims for payment to the US Agency for International Development, the Justice Department announced Thursday.

According to the DOJ, Chemonics failed to detect fraudulent charges by its subcontractor, Zenith Carex, for certain delivery services in Nigeria, and passed the charges on to USAID under the Global Health Supply Chain-Procurement and Supply Chain Management contract.

The DOJ said Chemonics failed to detect Zenith’s fraudulent overcharging for more than two years due to systematic process and personnel failures, including inadequate financial ...