Tuesday, June 27, 2006
AT&T agrees to pay U.S. $2.9 Million to settle Charges of Contracting Fraud
AT&T Communications-East, Inc., a subsidiary of AT&T Corp., has agreed to pay the U.S. $2.9 million to settle claims that it defrauded the General Services Administration (GSA) from 1998 to 2001, the Justice Department announced today.
The civil settlement resolves allegations that the company defrauded the federal government by knowingly passing through to government customers costs and fees known as Presubscribed Interexchange Carrier Charges, in violation of the terms of AT&T’s contract with GSA certain. The charges are a fee that long distance companies pay to local telephone companies to recover part of the costs of providing facilities that link each telephone customer to the telephone network.
The allegations arose from a lawsuit filed by realtor John Russo. Under the whistleblower provisions of the False Claims Act, a federal law that allows private individuals to sue on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. Click the following link to read a Justice Department press release on the qui tam settlement.
Posted by Quitam Help Admin on 06/27 at 07:50 PM
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