An information technology service provider to the United States military has agreed to pay $800,000 to resolve allegations that it violated the False Claims Act by purchasing items for their employees' personal use and billing those items against its government contracts, U.S. Attorney Philip R. Sellinger announced today.
The settlement resolves allegations that from January 1, 2012, to January 31, 2017, employees of Subsystems Technologies Inc. (STI), of Arlington, Virginia, purchased various electronic and luxury items for personal use and then provided those items, along with sporting event tickets and other things of value, to government employees in order to gain favorable treatment.
STI admitted that its employees purchased electronic and luxury items for personal use by both STI employees and government employees while improperly charging those items against the government contracts awarded to STI for services at Picatinny Arsenal in Morris County.
The claims settled by this agreement are allegations only, and there has been no determination of liability.