SAN FRANCISCO – The U.S. Justice Department is alleging that Sprint Communications Inc. over billed the government for expenses it incurred while complying with court -ordered wiretaps, officials announced Monday.
The lawsuit alleges that Sprint unlawfully inflated its charges by approximately 58%, causing federal law enforcement agencies to pay over $21 million in unauthorized costs from January 1, 2007 to July 31, 2010, federal prosecutors said.
“As alleged, Sprint over billed law enforcement agencies for carrying out court-ordered intercepts, causing a significant loss to the government’s limited resources,” U.S. Attorney Melinda Haag said. “This office will use all available tools to protect the public fisc, and we will continue to hold those who present false claims to the government accountable.”
Sprint spokesman John Taylor denied the allegations said the company “will defend this matter vigorously,” according to the San Francisco Appeal
“Under the law, the government is required to reimburse Sprint for its reasonable costs incurred when assisting law enforcement agencies with electronic surveillance. The invoices Sprint has submitted to the government fully comply with the law,” Taylor told the San Francisco Appeal.
Federal officials said in the complaint filed under the False Claims Act that they want treble damages and civil penalties along with reimbursement of expenses the government incurred in complying with court-ordered wiretaps, pen registers and trap devices.
In 1994, Congress passed the Communications Assistance in Law Enforcement Act or CALEA, which required telecommunications carriers to upgrade their equipment, facilities, or services to ensure they were capable of enabling the government to intercept and deliver communications and call-identifying information.
In 2006, the FCC ruled that carriers were prohibited passing on the costs of its CALEA upgrades to law enforcement agencies in its intercept bills.
From 2007 to 2010,Sprint included in its charges to the government the hidden costs of financing its CALEA upgrades, federal officials said.
Federal prosecutors said the claims asserted against Sprint are allegations only, and there has been no determination of liability.