April 10, 2025

Construction Company Faces Legal Action for Fraudulent Claims in West Virginia

Northford Structural Connections (NSC)

Northford Structural Connections (NSC) specializes in innovative engineering solutions for enhancing the safety and durability of precast concrete structures. Their patented products, including the Double-Tee Flexible Connection (DTFC) and Double-Tee Connection Pro (DTC Pro), address critical challenges like fatigue, corrosion, and seismic resilience. With a focus on quality and longevity, NSC provides advanced connection systems trusted by industry professionals for both retrofitting and new construction projects.

News Summary

Thompson Construction Group Inc., a firm based in South Carolina, has been ordered to pay $191,070 for fraudulent claims related to disaster recovery services after the 2016 West Virginia floods. Allegations include submitting false claims that violated federal laws and misusing funds meant to aid disaster victims. The settlement includes restitution and emphasizes the need for integrity in disaster recovery programs.

South Carolina Construction Company Faces Legal Repercussions for Fraudulent Claims in West Virginia

In a troubling turn of events, Thompson Construction Group Inc., a construction firm headquartered in Sumter, South Carolina, has been ordered to pay a staggering $191,070 to the United States government due to allegations of fraudulent claims tied to disaster recovery services provided after the catastrophic flooding in June 2016. This case shines a light on the misuse of crucial disaster recovery funds intended to assist the victims of one of the state’s most devastating natural disasters.

The Background of the 2016 Disaster

The floods that swept through southern and central West Virginia on June 26, 2016, were nothing short of devastating. With thousands rendered homeless and a tragic loss of at least 23 lives, the situation was dire, prompting federal intervention. The U.S. Department of Housing and Urban Development (HUD) allocated significant funds through the Community Development Block Grant – Disaster Recovery (CDBG-DR) program, aimed specifically at aiding low-income homeowners in rebuilding their lives.

Allegations Against Thompson Construction

However, Thompson Construction allegedly grossly misappropriated these funds by submitting false claims that violated the federal False Claims Act. Investigations revealed that the firm falsely certified that the homes they constructed met the contract conditions necessary for receiving funding from these federal disaster recovery grant funds. This included critical requirements emphasizing proper water management, crawl space drainage systems, and the installation of sump pumps in houses located in flood-prone regions.

It was discovered that the promised sump pumps and crawl space drainage systems were notably absent from the homes built by Thompson. Such oversight not only calls into question the integrity of the firm but also highlights the concerning reality of fraud within disaster recovery efforts. The allegations bring to light how taxpayer dollars, meant to aid suffering individuals, were instead misused.

The Settlement Agreement

As a consequence of the fraudulent activities, Thompson Construction has entered into a settlement agreement that requires them to pay $95,535 in restitution alongside an equal amount in double damages, as mandated by the False Claims Act. This penalty illustrates the serious implications of undermining programs designed to support vulnerable communities during their time of need.

The Impact on Disaster Recovery Resources

The repercussions of Thompson’s fraudulent actions extend far beyond just financial penalties. The HUD Office of Inspector General (HUD-OIG) has emphasized the negative impact such fraudulent activities have on federal taxpayer resources that are intended for disaster victims. The integrity of programs meant to assist affected homeowners hangs in the balance when companies exploit systems designed to help those in dire situations.

Investigative Efforts and Support

The West Virginia Commission on Special Investigations played a pivotal role in bringing these allegations to light. Conducting thorough interviews and gathering photographic evidence, the Commission diligently supported the case against Thompson Construction, ensuring accountability in the use of disaster recovery funds.

A Message of Commitment to Integrity

The collaborative efforts between various government entities and investigative partners underscore a strong commitment to pursuing individuals and companies that undermine the integrity of HUD programs. This case serves as a critical reminder that transparency and accountability are paramount, especially in times of crisis when vulnerable communities rely on support to rebuild their lives.

As taxpayers and disaster victims alike watch closely, the actions taken against Thompson Construction Group Inc. reinforce a delicate truth: integrity in disaster recovery efforts must always be upheld to protect those in desperate need of assistance.