30 November 2012, 14:47

US Justice Department accuses Gallup of multi-million invoices fraud

US Justice Department accuses Gallup of multi-million invoices fraud

The US Justice has filed a civil lawsuit against the Gallup Organization accusing it of continually inflating estimates under contracts for performing polling services for the Treasury and State Departments, resulting in federal agences overpaying millions of dollars.

According to the Justice Department’s complaint, Gallup submitted false invoices totaling $13 million.

Gallup denied the accusation and said, “We look forward to clearing our name in court.”

“I’m confident that there were no inappropriate actions taken by Gallup staff on any government contract or any other contract for that matter,” William E. Kruse, a vice president and associate counsel with Gallup, said.

The allegations were first brought to the Justice Department by former Gallup employee Michael Lindley, who said he saw Gallup repeatedly inflate its prices while negotiating single-bidder contracts with government agencies.

“I knew something was wrong,” Lindley, who was director of client services in Gallup’s Washington government division in 2008, said in an interview. “It was two sets of books.”

As Lindley said, he was instructed by a Gallup partner to create a different internal budget vastly reduced in comparison to the official budget to the U.S. Mint for part of a $7.5 million contract they were awarded.

Voice of Russia, The Washington Post

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