SoCal Defense Contractor|Fined $6.5 Million

SAN DIEGO (CN) – San Diego defense contractor Vector Planning & Services will pay $6.5 million for criminally defrauding the Pentagon, federal prosecutors said Tuesday.
     Vector, which also has offices in Chantilly, Va., agreed in a deferred prosecution deal that its then-CEO/majority owner submitted 5 years of false claims to the Defense Department, defrauding the Pentagon of $3.7 million.
     Vector ran its game from 2005 through 2009 and made false statements in 2010 through 2012, according to the U.S. Attorney’s office.
     Facing a Pentagon audit in 2011, it “falsified its electronic accounting entries, and prepared and backdated fake invoices in order to support those falsified accounting entries. Vector admits that the direction for the fraud came from its then-CEO, who is now deceased,” prosecutors said.
     The $6.5 million will resolve criminal and civil charges. The felony criminal prosecution will be postponed for 3 years. If Vector complies with its agreement, the criminal case will be dismissed.
     On its home page, Vector describes itself as “is a fast growing Small Business Information Technology Services, Systems Engineering and Management Consulting firm. We provide services and solutions to Federal, Defense, State Agencies and Fortune 500 companies. VPSI is a strong synergy-centric team of expert consultants, business and administrative program specialists, systems and network engineers, business processes experts, contract management professionals and information technology specialists.”

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