Tuesday, Jan. 21, 2014
COLUMBIA, S.C. (AP) -- A company that handles moves for members of the military is being accused of inflating its costs and overbilling the federal government.
The U.S. Justice Department has filed a civil suit against Covan World-Wide Moving Inc., and its affiliate, Coleman American Moving Services, Inc. The suit was initially filed in 2012 but was just unsealed last month.
The lawsuit says most of Coleman's business involves moving soldiers to and from South Carolina's Fort Jackson and Georgia's Fort Gordon, and the companies are paid based on the weight of the shipments they handle.
The Justice Department says the companies falsified weight paperwork, sometimes billing the government for thousands of excess pounds.
Attorneys for Covan and Coleman say the claims are without merit and should be dismissed.