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Virginia contractor agrees to pay $1.3M to settle overbilling claim

BALTIMORE (AP) — A Virginia-based information technology contractor will pay the federal government almost $1.4 million to resolve allegations that it overbilled NASA for hours worked and labor rates in excess of the actual charges.

U.S. Attorney for Maryland Erek L. Barron said in a news release that Telophase Corp. agreed to the payment to resolve federal False Claims Act allegations.

Telophase was awarded a subcontract for services to be provided to NASA’s Goddard Space Flight Center.

According to the news release, Telophase submitted false claims to NASA by billing it for labor hours in excess of the hours that Telophase could show that its employees and contractors actually worked.

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Filling out the Free Application for Federal Student Aid, or FAFSA, which opens by Dec. 31, is one of the most important steps students and their families can take to pay for college. Some states now make completing the FAFSA a high school graduation requirement. The U.S. Department of Education awarded about $111.6 billion in federal grants, loans and work-study funds in fiscal year 2022, according to the most recent Federal Student Aid annual report. Those federal funds will assist roughly 9.8 million students in completing their education.
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