NEW JERSEY – 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 the personal use of their employees and billing those items against its government contracts, according to U.S. Attorney Philip R. Sellinger.
The settlement resolves allegations that from Jan. 1, 2012, to Jan. 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 the 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.
