Baltimore, Maryland – In a stunning case of taxpayer-funded greed, Maryland-based Capital Technology Information Services, Inc., a health care information technology company, has agreed to pay the United States $1,712,949.44 to resolve federal False Claims Act allegations that it billed the National Institutes of Health (“NIH”) for costs that were unallowable for reimbursement.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Federal contractors are required to bill only for costs that are properly reimbursable and not for purely personal expenses unrelated to the contract work,” said United States Attorney for the District of Maryland Erek L. Barron. “This settlement represents our continuing commitment to holding companies accountable who do not follow the rules for federal contracting and grants and take advantage of taxpayer funded programs.”
“Federal grantees and contractors have a responsibility to ensure all charges they submit are for allowable expenses,” said Maureen Dixon, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to protecting valuable taxpayer dollars, and the programs they fund, from fraud, waste, and abuse.”
The core business of CTIS involved health data analytics and the provision of related website infrastructure to its customers to capture, store and use health and biomedical data. CTIS received a five-year grant from NIH, through the National Institute of Minority Health and Health Disparities (“NIMHD”), to establish a consortium of educational and for-profit organizations to study the impact of health delivery systems in a selected minority community, to understand possible disparities, and find innovative ways to eliminate the identified disparities. CTIS was also awarded an NIH Cancer Therapy Evaluation Program (“CTEP”) Task Order cost-reimbursable contract to provide information technology and telecom solutions in support of NIH for CTEP.
The settlement resolves allegations that between July 1, 2013, through June 30, 2018, CTIS knowingly billed the NIH for unallowable costs on both the NIH grant and the CTEP Task Order, including for such personal expenses as the costs of luxury vehicles, residential mortgage payments, housekeeping services, the cost of a wedding, and other unreasonable and/or non-contract-related work or for work not actually performed.
Defendant: Capital Technology Information Services, Inc.
Criminal Charge: False Claims Act
City and State: Baltimore, Maryland
Crime Date: July 1, 2013, through June 30, 2018
Sentence or Outcome: $1,712,949.44 settlement
Dollar Amount: $1,712,949.44
Related Federal Cases
- Rite Aid Corporation, Controlled Substances Act Violations, USA, 2023 · Alabama
- Ruben Alonso Hernandez-Lainez, Second-Degree Rape and Second-Degree Assault, Maryland 2023 · Texas
- FDIC Pushes Back GENIUS Act Stablecoin Application Deadline · Connecticut
- Federal Reserve System, Community Reinvestment Act Violations, USA,… · Alabama
- FDIC, Federal Reserve, OCC, Capital Rules for Tokenized Securities,… · Alabama
Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News