Virginia-based defense contractor Calnet Inc. has agreed to pay $18.1 million to resolve allegations that the company submitted false claims to the U.S. government, the Grimy Times has learned.
According to a settlement reached with the U.S. government, Calnet Inc., an intelligence analysis, information technology and language services company, overstated its provisional indirect or overhead rates on contracts it held with the U.S. government, resulting in inflated claims for payment.
The settlement relates to three contracts under which Calnet supported the U.S. war effort by providing translation and linguist services at Guantanamo Bay and several other facilities beginning in 2005.
Calnet was a subcontractor on one of the contracts and the prime contractor on the other two.
Stuart F. Delery, Acting Assistant Attorney General for the Civil Division, said, ?Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government. We will not tolerate false statements and failure to disclose information that is important to the government?s contracting processes.??
As part of the settlement, former Calnet employee Kimthy Chao will receive $2,669,724 for her role in bringing the lawsuit forward under the False Claims Act.
The settlement was the result of a coordinated effort by the Civil Division, Commercial Litigation Branch; the U.S. Attorney?s Office for the Eastern District of Virginia; the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
This settlement resolves a lawsuit filed in the U.S. District Court for the Eastern District of Virginia.
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Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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