Nearly two months before Adams Produce closed its doors and declared bankruptcy in April 2012, the long-time Birmingham, Alabama company was awarded a government contract, worth up to $41 million, to provide fruits and vegetables to schools and the military.
Adams Produce got the contract from the Defense Logistics Agency (DLA) despite questions raised by a former Adams employee, Charles Hall, in a 2009 lawsuit that claimed the company had fraudulently billed the agency on a previous contract, records show.
Federal prosecutors were aware of the whistleblower allegations prior to the 2012 contract, court documents show. Also, by June 2012, the FBI had had begun investigating top Adams Company officials involving overcharging DLA on fruit and vegetable contracts, according to court records.
Seven executives of the now-shuttered Adams have been charged so far in a billing fraud scheme, with five already serving prison sentences.
Keep reading this article at: http://www.al.com/news/birmingham/index.ssf/2014/06/adams_produce_awarded_41_milli.html
See timeline on Adams Produce history, its bankruptcy, and the fraud allegations here: http://www.al.com/news/birmingham/index.ssf/2014/06/adams_produce_timeline_slow_ri.html
