Merrick B. Garland, Attorney General | https://www.justice.gov/
Merrick B. Garland, Attorney General | https://www.justice.gov/
Mold Wranglers, Inc., a company based in Kalispell, has admitted to filing false claims for payment to the U.S. Department of Veterans Affairs (VA). The claims were related to an alleged abatement of lead paint at Freedom’s Path Fort Harrison, which did not occur according to the U.S. Attorney’s Office.
The company pleaded guilty to one count of False Claim Act conspiracy, a felony charge. Jonathan Carpenter, the owner of Mold Wranglers, represented the company during its arraignment. The potential penalties include a maximum fine of $500,000 and restitution.
Chief U.S. District Judge Brian M. Morris presided over the proceedings and will determine any sentence after reviewing the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for March 4, 2025.
Court documents revealed that Mold Wranglers had agreed to work on Freedom’s Path Fort Harrison, a housing project for veterans and their families at Fort Harrison. The work involved converting residential units and included painting over lead-based paint with encapsulating paint from 2018 to 2019. Federal regulations require strict adherence to safety protocols when dealing with lead-based materials, including certification for contractors and notification to the Environmental Protection Agency (EPA). However, Mold Wranglers' employees lacked certification, failed to notify the EPA, and applied paint inconsistently with manufacturer specifications.
Mold Wranglers submitted 11 Subcontractor Requisitions for Payment claiming lead-based paint work was completed. These claims were processed through other companies and paid by federal funds from the VA. The claims falsely indicated that an “abatement” was performed despite agreements stating otherwise. An email from an individual involved noted: “The plan is to aesthetically repair the paint and finish the homes. It’s not to remove the lead hazard and if the plan is to go down the abatement road, then it will be a significant increase to the scope of the work.”
The companies received approximately $456,000 from these false claims for an “abatement.”
The case is being prosecuted by the U.S. Attorney’s Office with investigations conducted by several agencies including the Environmental Protection Agency’s Criminal Investigation Division and Office of Inspector General as well as those from Veterans Affairs and Housing and Urban Development.
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