Port Sued for False Claims in PL 480 Program

On October 19, 2012, the U.S. Justice Department filed a complaint in the U.S. District Court for the District of Columbia against Jacintoport International LLC in Texas under the False Claims Act. The complaint claimed that Jacintoport overcharged for cargo handling and storage services ultimately paid for by the U.S. Government under the international food-aid program (PL-480). The case was commenced under the False Claims Act qui tam provisions where a private citizen (in this case an official with a U.S.-flag shipping company) can initiate a whistleblower suit in which the citizen might share in any recovery by the government.