US contractor investigated for $1 billion fees in Afghanistan

Associated Press

Federal prosecutors are investigating whether a U.S. contractor managing more than $1 billion in reconstruction contracts in Afghanistan overcharged the government.

Prosecutors acknowledged in a court filing last week that their criminal and civil investigations focus on allegations that the Louis Berger Group submitted inflated invoices to the U.S. Agency for International Development, which oversees international development projects.

The revelation came in court filings related to a Louis Berger executive’s federal lawsuit attempting to block efforts to keep his stock holdings in escrow while the investigations continue. Louis Berger, based in Morristown, N.J., is a major player in U.S.-funded reconstruction projects in Iraq and Afghanistan.