Virginia contractor agrees to pay $1.3M to settle overbilling claim

BALTIMORE (AP) — A Virginia-based information technology contractor will pay the federal government almost $1.4 million to resolve allegations that it overbilled NASA for hours worked and labor rates in excess of the actual charges.

U.S. Attorney for Maryland Erek L. Barron said in a news release that Telophase Corp. agreed to the payment to resolve federal False Claims Act allegations.

Telophase was awarded a subcontract for services to be provided to NASA’s Goddard Space Flight Center.

According to the news release, Telophase submitted false claims to NASA by billing it for labor hours in excess of the hours that Telophase could show that its employees and contractors actually worked.

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