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ACS To Pay $2.6 Million To Settle Federal Fraud Charges

Source: By Paul McDougall, InformationWeek, July 6, 2007 02:20 PM

Outsourcer Affiliated Computer(ACS) Services has agreed to pay more than $2.6 million to settle charges it over billed the federal government for business services. Under a deal disclosed earlier this week by the office of U.S. Attorney Richard Roper, ACS will pay $2.65 million to the U.S. government to resolve charges under the False Claims Act.

The federal government alleged that ACS employees submitted a number of fake claims for payment from 2002 to 2005 for work related to outsourcing contracts funded by the U.S. Department of Agriculture, the Department of Labor, and the Administration for Children and Families at the U.S. Department of Health and Human Services.

....... In a statement released Tuesday, Roper's office said ACS voluntarily reported that some of its employees were inflating the number of enrollees in order to boost revenue from the program.