Transportation Company Settles Allegations of Impersonating Military Members to Obtain Moving Contracts

Scott Air Force Base – The U.S. Attorney’s Office for the Southern District of Illinois announced Thursday that Denali Group, Inc., an Alaskan-based transportation company, has agreed to pay $3.5 million to resolve allegations that it violated the False Claims Act by submitting fake customer satisfaction surveys while posing as military personnel.

Federal investigators say Denali employees impersonated members of the Department of War (DoW), also known as the Department of Defense (DoD) and the U.S. Coast Guard to fraudulently boost the company’s performance scores in the Defense Personal Property Program (DP3), a system that helps service members relocate their personal belongings when assigned to new bases. The DP3 program is administered by the United States Transportation Command (USTRANSCOM) at Scott Air Force Base in Illinois.

“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. “Companies doing business with the federal government are expected to act with honesty and integrity, and we will use all our criminal and civil tools to protect taxpayer dollars from waste, fraud, and abuse.”

Alleged Deception Spanning Four Years

According to the investigation, Denali employees submitted falsified customer satisfaction surveys between January 2015 and March 2019, assigning perfect scores to the company even when service members had expressed dissatisfaction with their moving experiences.

Investigators found that Denali personnel used call spoofing technology to disguise their phone numbers, impersonated military members, and altered their voices to sound more convincing. These fake survey calls allegedly misled federal officials into believing Denali was performing at a superior level, which in turn resulted in the company being awarded more lucrative moving contracts.

Investigative Collaboration Across Military and Federal Agencies

The case involved an extensive investigation led by multiple agencies, including the Department of Defense Office of Inspector General, Army Criminal Investigation Division (CID), Air Force Office of Special Investigations (OSI), Defense Contract Audit Agency (DCAA), Naval Criminal Investigative Service (NCIS), and Coast Guard Investigative Service (CGIS).

“This outcome demonstrates the steadfast collaboration and determination by the Department of Defense Office of Inspector General, Defense Criminal Investigative Service and our investigative partners to ensure the integrity of the contracting process,” said Acting Special Agent in Charge Chad Gosch, DCIS Southwest Field Office. “We remain committed to safeguarding those programs that contribute to elite military readiness, as well as the wellbeing of our warfighters and their families.”

Special Agent in Charge John McCabe of the Army CID’s Midcentral Field Office added, “This outcome underscores our unwavering commitment to identifying those who defraud the U.S. Government.”

From the Air Force OSI, Special Agent William A. Rouse commented, “Defrauding the Government through falsified surveys is an affront to America and Air Force families, directly undermining the very communities they inhabit. Justice has been served, and we extend our gratitude to the investigative team for their diligence.”

Jennifer Desautel, Director of the Defense Contract Audit Agency, emphasized the importance of transparency in federal contracting. “Integrity is essential to the contracting process,” she said. “When contractors falsify records, it not only undermines Americans’ trust in their government but also highlights the need for accountability.”

Removed from Federal Program

Following the investigation, USTRANSCOM administratively removed Denali from participation in the DP3 program in 2022. The settlement, announced this week, resolves the government’s civil claims but does not constitute an admission of liability by Denali.

The case was handled for the United States by Assistant U.S. Attorney Laura Barke.

The U.S. Attorney’s Office reminds the public that anyone can report fraud, waste, or abuse involving the Department of War by visiting http://www.dodig.mil/hotline or calling 1-800-424-9098.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.