San Diego Firm Settles Overcharging Case
A California computer firm has agreed to pay $7.4 million to settle claims that one of its units improperly charged the Pentagon on contracts, the Justice Department said Tuesday.
The department said it had reached the agreement with Computer & Communications Technology Corp. of San Diego and the subsidiary, Zeta Laboratories Inc. of San Jose, to settle a government claim that the Defense Department was defrauded on contract charges between 1983 and 1986.
The alleged improprieties were discovered in June, 1986, when Whittaker Corp. acquired Zeta from CCT, the department said. Whittaker canceled that deal.
The companies agreed to pay $1 million plus interest in four installments and remit the balance after CCT sells the Zeta subsidiary.
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