EGL agreed to pay $300,000 to settle charges that the company's agent in Kuwait overcharged the government for containers carrying military cargo to Iraq, the U.S. Department of Justice said Tuesday.
The logistics provider, which was recently acquired by CEVA, was working on a subcontract with KBR renting containers for military shipments from January to June of 2006 when the overcharge took place. In settlement of a civil suit last year related to the same contract, EGL paid $4 million. Former regional vice president for the Middle East and India Christopher J. Cahill pleaded guilty last year in a criminal case involving $1.4 million in fraudulent "war-risk surcharges."