The Pentagon

A San Diego company has admitted cheating the Department of Defense of more than $3.6 million. (AFP/Getty Images / December 26, 2011)

SAN DIEGO -- A San Diego-based company providing information technology services to the Department of Defense admitted bilking the government of more than $3.6 million, according to the U.S. attorney's office.

Vector Planning & Services Inc. admitted the overbilling and agreed to pay the government $6.5 million under an agreement between the company and federal prosecutors that was submitted Tuesday to U.S. Magistrate William McCurine Jr.

The fraud involved a scheme for several years to apply general business costs to bills for different contracts. Fake invoices were submitted, with false accounting entries made, according to court documents.

The effect of the fraudulent submissions was, in essence, to pay Vector twice for the same expenses, according to prosecutors.

The scheme was blamed on the company's chief executive officer, who has since died.

"Those companies that choose to defraud our nation's armed services will be found and held accountable,"  U.S. Atty. Laura Duffy said.


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