NEWARK, NJ – An information technology service provider to the U.S. military has agreed to pay $800,000 to resolve allegations that it violated the False Claims Act by purchasing items for its employees’ personal use. employees and charging for these items against its government contracts, U.S. Attorney Philip R. Sellinger announced today.
The settlement resolves allegations that from January 1, 2012 through January 31, 2017, employees of Subsystems Technologies Inc. (STI), Arlington, Virginia, purchased various electronic and luxury items for personal use and then provided those items, as well as tickets to sporting events and other valuables, to government employees in order to obtain favorable treatment. STI admitted that its employees purchased electronics and luxury items for the personal use of STI employees and government employees while incorrectly charging for those items on government contracts awarded to STI for services at Picatinny Arsenal in the Morris County, New Jersey.
U.S. Attorney Sellinger credited U.S. Department of Defense Special Agents, Defense Criminal Investigative Service, Northeast Field Office, under Special Agent in Charge Patrick J. Hegarty; FBI Special Agents, under Acting Special Agent in Charge Michael Messenger in Newark; and U.S. Army Special Agents, Major Procurement Fraud Unit, Criminal Investigation Command, under the Special Agent in Charge is Larry S. Moreland, with the investigation that led to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.
The claims settled by this agreement are allegations only and no liability has been determined.