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Private military housing landlord pleads guilty in fraud case, fined $65 million for substandard residential conditions, fraud

The Department of Justice and Balfour Beatty Communities agreed to a plea deal Wednesday which will see the company, one of the largest providers of rental units on US military bases, pay $65 million in restitution, settlement, fines and fees for keeping properties in below-satisfactory conditions and falsifying maintenance records to show otherwise, Reuters reports.

Residents of military housing owned by Balfour Beatty frequently dealt with rodent and bug infestations, mold, water leaks and other problems that the landlord should have remedied.  Instead, Balfour Beatty falsified maintenance and call records to make it appear that complaints and other problems were handled promptly.

U.S. District Judge Emmet Sullivan accepted the plea agreement Wednesday, ordering Balfour Beatty to pay a $65 million penalty.  The company will also be on probation for three years, and the judge ordered it to hire an independent compliance monitor who will report to the court and to the Department of Defense.

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