NEWARK, NJ – Avis Budget Group Inc. (Avis Budget), which includes its wholly-owned brands Avis Car Rental, Budget Car Rental and Payless Car Rental, will pay $ 10.1 million to resolve allegations that it violated the False Claims Act by overcharging in the United States for rental vehicles, acting U.S. lawyer Rachael A. Honig announced today.
According to the United States’ assertions in the settlement agreement:
Avis Budget has made false claims regarding obtaining payments under an agreement with the United States administered by the Department of Defense Travel Management Office. From January 1, 2014 to December 31, 2019, Avis Budget submitted false claims and received payment from the United States for additional ineligible car rental charges, including collision damage waiver / damage waiver; additional liability cover / additional liability insurance; personal accident insurance; personal belongings coverage / personal belongings protection; and late fees. In addition to being ineligible, some of the fees charged by Avis Budget were already included in the government rental rate.
Acting US Attorney Honig credited US Department of Defense Special Agents, Defense Criminal Investigation Service, Northeast Field Office, under the leadership of Special Agent in Charge Patrick J. Hegarty; the regional agent in charge of the New Jersey residents‘ agency, Richard Monticello; Mitch Berry, regional officer responsible for the St. Louis Residents and Department of Defense Staff Agency, Defense Travel Management Office, under the direction of Director William R. Mansell Jr., with the investigation leading to the settlement.
The United States is represented by Assistant United States Attorney Mark C. Orlowski of the United States Attorney’s Government Anti-Fraud Unit in Newark.
The claims settled by this agreement are only allegations, and there has been no determination of liability.