Virginia companies settle false claims, kickback allegations

ALEXANDRIA, Va. (AP) — The U.S. Department of Justice says two Virginia companies have agreed to pay more than $1 million to settle allegations that they received kickbacks linked to federal government contracts reserved for certain small businesses.

Acting U.S. Attorney Raj Parekh says Index Systems of Fairfax and Capital Consulting Group of Arlington agreed that Index would use its specific certification to bid on a government contract on which Capital Consulting was not eligible to bid.

The government also alleged that between 2018 through 2020, Index had another kickback arrangement with another company which also settled in July in response to allegations.

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