Salem Business Agrees to Pay Over $230K to Resolve Allegations

Facing allegations that it violated the False Claims Act when doing business with the United States Army, a Salem business has agreed to pay $230,517.26 to resolve the issue, according to United States Attorney John P Kacavas.

An investigation into Advanced Device Technology, Inc. (ADT), a designer of infrared products since 1982, turned up concerns with delivery orders on a contract awarded to the business by the U.S. Army Space and Missle Defense Command.

The delivery orders, referred to as "level of effort clauses," required ADT to spend a specified minimum amount of labor hours on specific portions of the contract.

Concerns were also raised that ADT attributed labor hours to the contract that were not actually incurred on the contract.

According to the Department of Justice report, the government can recover treble damages and $5,500 to $11,000 for each false or fraudulent claim filed if it is established that a person has submitted or caused others to submit false or fraudulent claims to the U.S.

ADT cooperated in the government's investigation, which was led by U.S. Army Criminal Investigation Command, Boston Fraud Branch Office, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.

The case was handled by Assistant U.S. Attorney Michael McCormack.