Federal authorities have ordered a State College-based tech company to pay $1.2 million to settle a civil liability suit for alleged violations of the False Claims Act.
According to a press release, KCF Technologies Inc. was accused of improperly billing its labor time spent on various Department of Defense contracts, between 2016 and 2019.
In May of 2019, federal agents were seen at both KCF locations in State College, however, at the time, it was unclear what the investigation entailed.
“Investigating procurement fraud allegations is a top priority for the DoD Office of the Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “This settlement reflects our commitment to working with our law enforcement partners and the U.S. Attorney’s Office for the Middle District of Pennsylvania to ensure contractors who misuse taxpayer funds are held accountable.”
“NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by rooting out procurement fraud at its source,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office.
Authorities noted that while KCF cooperated with the investigation, the settlement is “neither an admission of liability by KCF, nor is it a concession by the United States that its claims are not well founded.”