Senator’s letter comes after a private housing contractor operating at military installations pleaded guilty to major fraud against the United States
WASHINGTON – Arizona senior Senator Kyrsten Sinema requested additional information from the U.S. Department of Defense regarding long-term military housing contracts, after Balfour Beatty Communities LLC (BBC)—a private housing contractor operating military housing communities—pleaded guilty to major fraud against the United States.
“Arizona military families deserve responsive and respectful housing services, and we’re holding the federal government accountable to ensure it delivers to Arizona servicemembers,” said Sinema.
On December 22, 2021, BBC pleaded guilty to major fraud against the U.S. and agreed to pay more than $65 million in fines and restitution. According to the U.S. Department of Justice, BBC falsified performance data and destroyed resident comment cards in order to collect performance incentive fees.
BBC continues to operate military housing communities at 55 military installations across the country, including Luke Air Force Base. Given BBC has several decades left on their long-term contracts, Sinema asked the Defense Department for clarification on what it means for BCC’s current contract at the 55 military installations following the settlement requiring BBC to be on 3 years of probation and engagement with an independent compliance monitor. Sinema also asked what mechanisms are in place to ensure this fraudulent behavior does not happen again. Sinema pressed how the Defense Department plans to instill trust in military families that BBC and other private housing contractors will be responsive, respectful, and committed to meeting their needs.
Click HERE to read Sinema’s letter.