Feds, contractor working to settle fraud lawsuit

LOUISVILLE, Ky. (AP) - The federal government has sued a former Fort Knox contractor who attorneys say steered hundreds of thousands of military contracting dollars into his own company, saying he misused his military assignment to create a lucrative retirement for himself.

U.S. District Judge John G. Heyburn II issued a temporary restraining order last week barring Gary Meredith and his company, Meredith & Associates from withdrawing any of the money he received from the $2 million contract he created before ending his tenure with the government. Heyburn gave the two sides until Sept. 11 to reach a settlement.

Prosecutors said Meredith made $653,428 for his work as the subcontractor on the deal.

Meredith's attorney, Erwin Roberts of Louisville, told The Associated Press he's been discussing a possible settlement with federal officials.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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