ADT settles overbilling accusations, to pay $230,000
April 24. 2013 1:36PM
CONCORD - Advanced Device Technology Inc. (ADT) of Salem will pay the U.S. government more than $230,000 to resolve allegations it overbilled the U.S. Army for infrared sensor and infrared camera development.
ADT, a designer of infrared products since 1982, was under contract for infrared sensor development by the U.S. Army Space and Missile Defense Command.
Concerns arose, however, with certain delivery orders, referred to as "level of effort clauses," in the contract that required ADT to spend a specified minimum amount of labor hours on specific portions of the contract, according to a news release issued by U.S. Attorney John P. Kacavas, District of New Hampshire.
The government also had concerns that ADT was overbilling, attributing labor hours to the contract that were never incurred.
ADT cooperated in the government's investigation and agreed to pay $230,517.26 to resolve allegations it violated the False Claims Act. Under the act, if the government proves someone submitted or caused others to submit false or fraudulent claims to the U.S., the government can recover treble damages and from $5,500 to $11,000 for each false or fraudulent claim filed.
The case was investigated by the U.S. Army Criminal Investigation Command, Boston Fraud Branch Office, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. Assistant U.S. Attorney Michael McCormack handled the case.