Defense Contractor Calnet to Pay $18.1 Million to Settle Overbilling Allegations

The Virginia-based defense contractor Calnet has agreed to pay the federal government more than $18 million to settle claims that the company overbilled the government on defense contracts. According to the Washington Post, the settlement addresses alleged overbilling on three contracts for linguist services and translation at Guantanamo Bay and other location.

The overbilling claims stem from alleged overstatements by Calnet concerning its overhead rates on the contracts. By overstating its overhead rates, the Justice Department alleged, Calnet submitted to the federal government inflated or false claims for payment.

The fraud was revealed by Kimthy Chao, a whistleblower who formerly worked for Calnet. Ms. Chao filed a lawsuit in 2009 under the whistleblower provisions of the False Claims Act, which allows individuals to file a lawsuit on behalf of the federal government and to share in any funds recovered. In this case, the whistleblower’s share of the settlement is nearly $2.7 million.

Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.

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