U.S. Nets $102M From Whistleblower Actions

(CN) - Verizon Communications paid the United States over $93 million to resolve claims that it overcharged the government in order to obtain contracts, the Justice Department said Tuesday.

The government said the Verizon subsidiary MCI Communications Services invoiced the General Services Administration for a variety of taxes and surcharges. Under contracts, the government is not allowed to reimburse property taxes, carrier recovery charges or certain surcharges.

The settlement is a result of a whistleblower complaint filed by Stephen Shea and 2Probe LLC on behalf of the government.

"Corporations that contract to provide services to federal, state and local governments must play by the rules," Justice Department attorney Tony West said. "We will protect taxpayers against those who seek to charge more than they deserve."

On the same day, the Justice Department also announced that German security company Securitas GmbH Werkschutz paid the United States over $9 million to settle claims that the company billed the U.S. Army for guard hours that were not actually worked.

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