Texas Company Settles Military Price-Gouging Case

HOUSTON (November 19, 2013) The U.S. Justice Department said Tuesday it has reached a $4.2 million settlement with a Houston produce distributor accused of price-gouging the military for fresh fruit and vegetables.

A Justice Department statement Tuesday announced the settlement with FreshPoint Inc., from which the Defense Department had purchased produce under 15 separate contracts.

The agreement settles allegations that from Dec. 17, 2007, through Sept. 11, 2009, FreshPoint overcharged the government on hundreds of sales of fresh fruit and vegetables.

The Justice Department accused the company of inflating prices improperly to reflect FreshPoint's view of the prevailing market price of the goods at the time of sale.

The government alleged that violated FreshPoint's contracts with the government that required FreshPoint to provide the produce at cost, plus a preset markup for profit.

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