ALBANY -- New York Attorney General Eric Schneiderman says his office has settled an investigation for $18 million into seven years of overcharges by a food company serving 39 school and public lunch programs statewide.
The settlement with Compass Group USA Inc. requires it to repay almost $3 million to the schools for vendor discounts that Schneiderman says by law should have been passed on.
The attorney general says Wednesday Compass staffs and supplies food services at schools like Manhattan Day School and the Schenectady City School District through its subsidiary, Chartwells.
The state is expected to get about $15 million from damages and penalties under New York's False Claims Act.
Schneiderman says Compass "improperly profited" by overcharging taxpayers and shortchanging schools.
“Compass improperly profited by overcharging New York’s taxpayers and shortchanging our schools. There are no excuses for this kind of misconduct,” said Attorney General Schneiderman in a media release. “On behalf of students, parents and taxpayers, we are pleased that New York’s schools will get their money back, and that this corporation will be held accountable for siphoning funds meant to benefit students.”
(Information from the Associated Press was used in this release.)
