Former Government Contractor Settles to Resolve False Claims Act Allegations

On January 25, 2021, FlavorPros, LLC; Artisan Foods, LLC; America’s Best Packaging, Inc.,; the owners of the companies; and an investor of the companies entered into an agreement with the Department to pay $250,000.00 to resolve False Claims Act allegations.  According to the settlement agreement, the government alleged that it had civil claims against FlavorPros, LLC, et al., arising from the sale of adulterated or substandard food products to the BOP from on or about October 1, 2011, through on or about December 31, 2018.  The government alleged that FlavorPros, LLC, and its owner, Charlene Brach, submitted false claims for payment by the BOP for spices that did not meet the purity requirements of the contract.  The government further alleged that Charlene Brach and/or her husband, Richard Brach, created Artisan Foods, LLC, to circumvent the administrative suspension of FlavorPros, LLC, and filed a false claim with the BOP for additional substandard food products.  No determination of liability was made by this settlement.  The investigation was conducted by the OIG’s Fraud Detection Office and the U.S. Food and Drug Administration’s Office of Criminal Investigations.