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Florida CFO Jeff Atwater Secures Multi-Million Dollar Settlement in Large-Scale State Contract Investigation

8/19/2015

Contact: Ashley Carr
(850) 413 – 2860

 
TALLAHASSEE, Fla. – Chief Financial Officer Jeff Atwater today announced that a $15.5 million settlement has been secured as a result of a contract investigation involving U.S. Foods, Inc. The investigation conducted by the Department of Financial Services’ Office of Fiscal Integrity concluded that U.S. Foods falsely inflated its prices for supply food services to the Florida Department of Corrections (DOC) between 2008 and 2014. Through this deceitful billing practice, U.S. Foods wrongly collected millions in state dollars. 
 
“Stealing from the State of Florida takes money from the pockets of all taxpayers in Florida, and it’s absolutely intolerable,” said CFO Atwater. “Demanding greater accountability from those who do business with our state is a top priority of mine, and we will continue our efforts to weed out the bad actors.”
 
During the six-year period that U.S. Foods was under contract with the DOC, invoices for food products contained prices that were inconsistent with contract terms. The contract required U.S. Foods to pass along certain discounts received from suppliers to the DOC. Investigators concluded that U.S. Foods failed to do, causing their costs to remain inappropriately inflated.

Department investigators uncovered the practice and began a multi-year investigation that ultimately led to this settlement. The Florida Department of Law Enforcement, the Florida Department of Corrections, and the Federal Bureau of Investigation assisted with the investigation.

To learn more about CFO Atwater’s efforts to reduce fraud and provide greater contract accountability in Florida, visit our Transparency Florida webpage at www.myfloridacfo.com/transparency/.

 
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Chief Financial Officer Jeff Atwater, a statewide elected official, oversees the Department of Financial Services. CFO Atwater’s priorities include fighting financial fraud, abuse and waste in government, reducing government spending and regulatory burdens that chase away businesses, and providing transparency and accountability in spending. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).