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Avis Budget Group to Pay $10.1 Million to Settle False Claims Act Allegations for Overcharging on Rental Vehicles

PARSIPPANY — Avis Budget Group Inc. 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 the United States in connection with rental vehicles, said Acting U.S. Attorney Rachael A. Honig.

Avis Budget Worldwide Headquarters is located at  6 Sylvan Way.

According to the contentions of the United States contained in the settlement agreement:

Avis Budget made false claims in connection with obtaining payments under an agreement with the United States managed by the Department of Defense Travel Management Office. From January 1, 2014, through December 31, 2019, Avis Budget submitted false claims and received payment from the United States for unallowable supplemental charges to car rentals, including collision damage waiver/loss damage waiver insurance; supplemental liability coverage/additional liability insurance; personal accident insurance; personal effects coverage/personal effects protection; and late turn-in fees. In addition to being unallowable, some of the fees Avis Budget charged were already included in the government rental rate.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; Regional Agent in Charge for the New Jersey Resident Agency, Richard Monticello; Regional Agent in Charge for the St. Louis Resident Agency, Mitch Berry, and personnel of the Department of Defense, 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 U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.

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

Click here to download a copy of the settlement.

Frank Cahill
Frank Cahill
Publisher of Parsippany Focus since 1989 and Morris Focus since January 1, 2019, both covering a wide range of events. Mr. Cahill serves as the Executive Board Member of the Parsippany Area Chamber of Commerce, Lt. Governor of Division 9 Kiwanis Club of NJ, and Chairman of the Parsippany-Troy Hills Economic Development Advisory Board. Owner of the Morris now app serving small business in Morris County.

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