New Britain Company To Pay $600K To Resolve Allegations: Feds

NEW BRITAIN, CT — A New Britain company will pay $600,000 to resolve allegations that it violated the False Claims Act, according to a statement from federal prosecutors. CW Resources Inc. was accused of falsely reporting the number of employees with disabilities it hired.

CW Resources, as part of the AbilityOne Program, had agreed to hire significantly disabled people as 75 percent of its direct labor hours. The Ability One Program provides employment opportunities for people who are blind or have significant disabilities in the manufacturing and delivery of products and services to the federal government.

The federal government alleged that the company over-reported the number of direct labor hours worked by people with significant disabilities "were much lower (than the company reported) and were not supported by adequate medical documentation," according to the statement.

CW resources has agreed to pay the federal government $600,000 to resolve the allegations.

"These false claims damaged an important government program that provides employment opportunities for people who are blind or have significant disabilities, and we hope that this settlement and the funds recovered send a significant deterrent message," Acting U.S. Attorney Leonard C Boyle said in a statement. "Protecting the U.S. Treasury against false claims is a priority of this office and the Justice Department. I thank CW Resources for cooperating fully during the extensive investigation of this matter and we are confident that the compliance program incorporated into this agreement by the AbilityOne Commission will have a positive impact."