LI Company To Pay $4 Million To Settle Overbilling Claims

FARMINGDALE, NY - An Aerospace company based in Farmingdale recently agreed to pay over $4 million in a settlement for claims that the company overbilled the federal government for certain contracts, according to acting United States Attorney Bridget Rohde.

Between 2004 and 2007, Telephonics Corporation, which provides services, products and technology to the Department of Defense, was hired to provide work and materials for the assembly of the Army’s Warlock Systems and the Navy’s LAMPS Systems, according to the U.S. Attorney.

The Warlock Systems are installed in vehicles to interrupt wireless systems designed to trigger improvised explosive devices and are used in Afghanistan and Iraq while the LAMPS Systems are used on Navy helicopters.

The government claims that Telephonics improperly billed the Army and Navy by calculating invoices using by inflated“estimates” and charging different labor rates than was agreed on in the contracts, according to the U.S. Attorney.

There was no allegation about the quality of Telephonics’ products or services. The settlement is not an admission of wrongdoing by Telephonics.

The company will be paying a total of $4,250,000 to the United States.

“Fraud is never a victimless crime,” NCIS Northeast Field Office Special Agent-in-Charge Leo Lamont said. “In this case, involving the intentional mischarging of the Navy for critical equipment during a time of war, the victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests.”

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