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Defense contractors to pay $4.6 million for overcharging

By Ryan Maass
Seal of the United States Department of Justice.
Seal of the United States Department of Justice.

WASHINGTON, Sept. 29 (UPI) -- L-3 Communications Corporation, Vertex Aerospace LLC and L-3 Communications Integrated Systems LP have agreed to pay a $4.63 million settlement for inflating labor hours for their contracts, the U.S. Justice Department announced Monday.

The three companies are collectively identified as L-3. L-3 was responsible for rotary aviation maintenance and support services for the U.S. Army in Afghanistan. They were accused of overcharging their services at the Continental U.S. Replacement Centers in Fort Benning, Georgia, and Fort Bliss, Texas. Both locations are tasked with deploying forces overseas.

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"The Justice Department is committed to vigorously pursuing all those who knowingly submit false claims under government contracts," said Principal Deputy Assistant Attorney General Benjamin C. Mizer in a statement, "Contractors that seek taxpayer funds must be scrupulous in their billing, and invoice only for work and amounts permitted by their contracts."

U.S. government officials say L-3 knowingly overcharged for their services spent on their operations from 2006 to 2011. The lawsuit was filed by former L-3 independent contractor Robert A. Martin. He will receive $798,675 from the settlement.

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