SAN DIEGO — A Virginia company agreed to pay $6.5 million after it inflated claims for payments under several Navy contracts, the Justice Department announced today.
The inflated payments were brought to light by a whistleblower who will receive $1.8 million as his share of the recovery, authorities said.
Under the whistleblower provisions of the False Claims Act, citizens can sue, on behalf of the government, companies or people who make false claims to get federal funds and to share in any recovery of money, according to prosecutors.
Vector Planning and Services Inc., an information technology, systems engineering, program management and consulting firm headquartered in Chantilly, Va. , also submitted claims for other costs that never occurred, federal officials said.
Vector Planning and Services center of operations is in San Diego, Calif.
U.S. Attorney for the Southern District of California Laura E. Duffy said. “Today’s settlement demonstrates our commitment to pursue defense contractors who knowingly defraud or overcharge military programs.”
“Contractors who wish to do business with the military must act with honesty and integrity, or they will be held accountable for their actions,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.
The claims settled by this agreement are allegations only; there has been no determination of liability, according to the Justice Department.