Government contractor pleads guilty in fraud case

June 4, 2019 GMT

CONCORD, N.H. (AP) — A New Hampshire company that contracted with the U.S. Department of Defense to purchase mats to absorb hazardous materials has pleaded guilty to making false statements.

The U.S. Attorney’s office says Enco Industries Inc. in Plaistow could be fined up to $500,000. Sentencing is scheduled in federal court on Sept. 11.

Enco has been an approved government contractor since 2004. It was awarded a contract in 2012 with specifications for the mats. It falsely claimed the mats it provided to the Defense Logistics Agency were bought from a Pennsylvania-based company, as the agency requested. Enco received payments totaling over $683,000.

In 2013, an independent company concluded that several of the mats it tested didn’t meet the contract’s requirements. As a result, agency notified Enco the contract might be terminated.