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Federal Suit in West Virginia Cites Subcontractor Kickbacks

U.S. Attorney's Office
United States Department of Justice

Federal officials have filed a civil complaint against 15 people and 12 companies, alleging they participated in a kickback scheme while working on two federally-funded laboratory projects in West Virginia.

The U.S. Attorney's Office alleges that a former special investigator for the National Energy Technology Laboratory projects received thousands of dollars in kickbacks and approved subcontracts to companies where his sons were employed. The work was not completed.

Authorities say the investigator was terminated in 2010 from contractor Arizona Public Service Company, an electricity provider that also explored renewable energy alternatives and was working for the federal government on the West Virginia projects.

The laboratory projects, administered from Morgantown, involved more than $85 million of federal spending for developing natural gas co-production and carbon dioxide uses.

The government is seeking civil penalties.

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