Both the large contract awards by the government and the quality and efficiency of some of the reconstruction work have become targets of criticism by Congress and the public. Government audits and concerns about profiteering, corruption and ineptitude became a standard feature associated with reconstruction work in Afghanistan and Iraq.

The Justice Dept. has not said which projects are the target of its overbilling investigation, which started in 2007.

In his narrative of the investigation, Wolff said the Justice Dept. exercised undue power over the Berger Group’s financial fortunes since the agency conducted a search of company offices three years ago.

“The mere allegation of wrongdoing could result in debarment,” which could force the company “to shut its doors,” Wolff claims.

A year ago, the U.S. attorney and Berger Group executives and attorneys began negotiating a financial settlement, but Wolff’s role also was discussed.

Under an agreement reached in late 2009, Berger Group, USAID and Wolff agreed that Wolff would refrain from any government-related activity, step down from Berger Group’s operating committee and recuse himself from cost-plus government contracting activities by various firms in which the Berger holding company had an interest.

All of Wolff’s activities unrelated to government work were allowed to go on, including decisions concerning the “sale or disposition” or “mortgaging” of the company’s material capital assets.

Late last month, Berger Group executives moved to completely separate Wolff from the company. In one memo provided in Wolff’s court filing, Berger Group executives seemed careful to keep Fishman’s assistant U.S. attorney, Thomas Eicher, apprised of their progress in dealing with Wolff.

When told about plans for Wolff to go, “Eicher responded that our responses were acceptable and that the Company made good decisions,” Louis Berger Group CEO Nicholas J. Masucci wrote in an e-mail to the other Berger Group executives.

Masucci proposed severing all ties with Wolff by August 13 and stated in the memo that Wolff had prepared all needed documents for his resignation.

Six days later, on July 29, Fishman and Eicher requested in writing that Berger Group attorneys place funds in the amount needed to repurchase Wolff’s shares in escrow as well as provide all information about the timing and price of the repurchase and similar information about any other stock repurchases by the company in the last two years.

In a court filing replying to Wolff’s request for relief, the Justice Dept. claims it never overstepped its role or interfered with the company’s decisions in any way.

“The Government … never demanded, required, or instructed [Louis Berger Group]” to change its relationship with Wolff or place the funds needed to repurchase Wolff’s shares. … Nor has [LBG] agreed to do so,” says the filing. “Nor, as the Complaint speculates, did the Government ever direct, or request, that Plaintiff be fired.”

The Justice Dept. argues it was concerned only “that the payment would impair the company’s ability to fulfill its own financial liability” to the government under the False Claims Act.

Last year, Berger Group named Thomas Nicastro as acting corporate compliance and ethics officer. According to a statement from the company, Nicastro “has focused his efforts on ensuring LBG operates ethically and in compliance with all of our U.S. government, state, local and other client requirements. He has overseen the company’s enhancements to our compliance program and has provided and will continue to provide training to LBG staff around the world.”