Thompson Construction Group Inc., a South Carolina-based contractor, has agreed to pay $191,070 to the federal government after a civil investigation determined that the company submitted false claims for payment related to disaster recovery efforts in West Virginia.

Background on the Case

The allegations stem from contracts awarded to Thompson Construction following the catastrophic June 2016 floods that devastated central and southern West Virginia. After a federal disaster declaration, Congress allocated funds through the U.S. Department of Housing and Urban Development (HUD) to assist with rebuilding efforts. These Community Development Block Grant – Disaster Recovery (CDBG-DR) funds were designated to aid low-income homeowners in restoring their properties.

Authorities discovered that Thompson Construction’s work did not meet contractual and safety standards, yet the company still submitted payment claims for the substandard construction. Federal investigators determined that the claims violated regulations regarding the proper use of disaster recovery funds, leading to the settlement agreement.

Legal and Financial Consequences

Under the terms of the settlement, Thompson Construction will repay $191,070 to the federal government, though the company has not admitted liability. This resolution follows increased scrutiny on contractors involved in federally funded recovery projects, ensuring that aid is used appropriately and that affected communities receive quality reconstruction services.

West Virginia officials and federal regulators emphasized the importance of holding contractors accountable for their work on disaster recovery efforts. The case underscores the government’s commitment to ensuring transparency and efficiency in the allocation of taxpayer-funded relief efforts.

Wider Impact and Lessons Learned

The 2016 floods caused billions of dollars in damage, displacing thousands of West Virginians and requiring extensive rebuilding initiatives. With federal funds playing a crucial role in recovery, authorities continue to monitor how aid is spent and ensure that contractors fulfill their obligations.

The enforcement action against Thompson Construction serves as a warning to other contractors working on disaster recovery projects. Regulatory agencies have reinforced their commitment to preventing fraud, waste, and abuse in relief programs. Ensuring that public funds are used responsibly remains a priority as West Virginia continues its long-term recovery efforts.

This case highlights the importance of proper oversight in disaster relief projects and serves as a reminder that companies must uphold their commitments when entrusted with federal funds.

Originally reported by WV News Report in WV News.