Verizon Communications Inc. Pays $93.5 Million to Resolve False Claims Act Allegations
Verizon Communications Inc. has paid the United States $93,525,410.96 in order to resolve allegations that the company overcharged the General Services Administration (GSA) on invoices dealing with government-wide voice and data telecommunications services contracts, the Justice Department announced today.
The alleged overcharging by Verizon subsidiary MCI Communications Services Inc. dba Verizon Business Services occurred in connection with the FTS2001 and FTS2001 Bridge contracts. The department’s joint investigation with GSA’s Office of the Inspector General (OIG) found that Verizon and MCI submitted false claims under the contracts for the reimbursement of property taxes, common carrier recovery charges and unallowable surcharges, charges that are not directly reimbursable under the FTS2001 contracts.
“Corporations that contract to provide services to federal, state and local governments must play by the rules,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “We will protect taxpayers against those who seek to charge more than they deserve.”
“A government contract is not a blank check,” said U.S. Attorney Ronald C. Machen Jr. “Contractors who overbill the government will be aggressively pursued and required to make the taxpayers whole. This $93 million recovery should make contractors realize that we are firmly committed to ensuring the integrity of corporate billing practices with respect to government programs.”
Stephen M. Shea and 2Probe LLC filed the qui tam or whistleblower complaint on behalf of the government. The case is captioned United States ex rel. Stephen M. Shea and 2Probe LLC v. Verizon Communications Inc., Civ. No. 1:07CV00111 (GK) (D.D.C.).
“This case is another demonstration of the value of OIG audits in pursuing, proving, and recovering overbillings on government programs,” said GSA Inspector General Brian D. Miller.
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General and Office of General Counsel.
Mandatory Facts:
– Defendant: Verizon Communications Inc.
– Crime: False Claims Act Allegations
– State: District of Columbia
– Year: 2023
– Outcome: $93.5 million settlement
– Date: Not specified
Related Federal Cases
- Four Non-Profits, False Claims Act Violations, Washington DC 2023 · District of Columbia
- CA Inc, False Claims, Washington D.C. 2024 · District of Columbia
- Patrick Donell Brightwell, Violating Clean Water Act, District of Columbia 2014 · Florida
- Bianca Bush-Bronson, Wire Fraud, District of Columbia 2017 · District of Columbia
- Arthur Chan, Trafficking in Counterfeit Designer Goods, District of Columbia 2016 · District of Columbia
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime