KALISPELL, Mont. — Kalispell Mold Wranglers admitted to submitting false claims to the U.S. Department of Veterans Affairs on Tuesday.

The company admitted it claimed a reduction in lead paint that was done at Freedom’s Path Fort Harrison when it wasn’t.

Mold Wranglers faces a maximum fine of $500,000 and restitution.

Court documents say the company worked on Fort Harrison’s Freedom’s Path veterans housing project from 2018 to 2019, where they painted over lead-based paint with an encapsulating paint.

Company employees were not authorized to perform lead work and did not notify EPA that they had applied the paint. The company received $456,000 in rebates from the federal government.

The company had previously agreed not to take a cut.

The US Attorney’s Office, District of Montana sent the following:

Kalispell company admits it submitted false claims to federal agency claiming lead paint abatement in Fort Harrison veterans housing

Mold Wranglers, Inc., a Kalispell-based company that provides hazardous materials abatement services, admitted today that it submitted false claims to the U.S. Department of Veterans Affairs claiming lead paint abatement at Freedom’s Path Fort Harrison when it wasn’t made. , the US Attorney’s Office said.

The defendant, Mold Wranglers, Inc., appeared for arraignment and pleaded guilty to an information charging one count of False Claim Act conspiracy, a felony. Mold Wranglers was represented by Jonathan Carpenter, the owner of the company. The company faces a maximum fine of $500,000 and restitution.

Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the US Sentencing Guidelines and other statutory factors. Sentencing was set for March 4, 2025.

The government claimed in court documents that Mold Wranglers agreed to work at Freedom’s Path Fort Harrison, which is affordable rental housing for veterans and their families at Fort Harrison. The project consisted of converting residential units for military veterans and their families. From 2018 to 2019, Mold Wranglers performed work on Fort Harrison’s Freedom’s Path, including but not limited to painting over lead-based paint with an encapsulation paint. Because of the dangers associated with lead, federal regulations strictly regulate all lead work. All contractors must be certified to perform such work, and the Environmental Protection Agency must be notified that lead work is taking place. Mold Wranglers employees were not authorized to perform lead work, failed to notify the EPA, and applied encapsulation paint outside of the paint manufacturer’s specifications.

Mold Wranglers submitted 11 Subcontractor Payment Requests detailing that lead paint work was performed. Those claims, through other companies, were filed with the VA and paid with federal funds. In doing so, Mold Wranglers and others claimed to have effected a “discount”, which was false. Indeed, the companies have expressly agreed that they will not make a discount, which requires certain specifications to be met. In an email, one person said:

“The plan is to cosmetically repair the paint and finish the homes. It’s not to eliminate the lead hazard and if the plan is to go down the reduction route, then there will be a significant increase in the scope of the work.”

The companies requested and received a payment of approximately $456,000 from the United States for a “rebate.”