FAIRVIEW HEIGHTS — Denali Group, Inc., an Alaskan transportation company, has agreed to pay $3.5 million to settle allegations that it violated the False Claims Act by submitting false customer satisfaction surveys while impersonating U.S. Department of War and Coast Guard personnel. The fraudulent activity reportedly took place between January 2015 and March 2019.
Denali participated in the Defense Personal Property Program (DP3), which provides moving and storage services to Department of War (formerly Department of Defense) and Coast Guard members. The program, administered by the United States Transportation Command at Scott Air Force Base, Illinois, awards shipments to transportation providers based largely on customer satisfaction survey scores completed by service members or their households.
According to the allegations, Denali employees used call spoofing applications to mask their phone numbers and impersonated military personnel during surveys by disguising their voices, speaking with accents, or using voice-changing technology. These actions resulted in falsely inflated perfect scores that influenced the number of shipments awarded to Denali.
“Denali’s fake surveys gave them an unfair advantage over other contractors and shortchanged our military families moving through Scott Air Force Base,” said U.S. Attorney Steven D. Weinhoeft. He emphasized the government’s commitment to protecting taxpayer dollars from waste, fraud, and abuse.
The investigation was conducted by multiple agencies, including the Department of Defense Office of Inspector General, Army Criminal Investigation Division, Air Force Office of Special Investigations, Defense Contract Audit Agency, Naval Criminal Investigative Service, and Coast Guard Investigative Service.
“This outcome demonstrates the steadfast collaboration and determination by the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our investigative partners to ensure the integrity of the contracting process associated with the Defense Personal Property Program,” said Acting Special Agent in Charge Chad Gosch of the DCIS Southwest Field Office.
The United States alleges that Denali’s actions induced the government to award the company more DP3 shipments than it otherwise would have received. In 2022, USTRANSCOM administratively removed Denali from the DP3 program.
Other officials involved in the investigation highlighted the importance of accountability and integrity.
“Integrity is essential to the contracting process, and collaboration among investigative agencies plays a critical role in upholding it,” said Jennifer Desautel, Director of the Defense Contract Audit Agency. “When contractors falsify records, it not only undermines Americans’ trust in their government but also highlights the need for accountability.”
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
