Infotec to Settle Federal Charges for $1.3 Million

Infotec Development Corp. and its chief executive agreed to pay $1.3 million to settle civil charges that the company overcharged the government on a computer supply contract, federal officials said Monday.

Infotec, a computer supply company with offices in Santa Ana and Wakefield, Mass., was accused by federal authorities of overcharging the government for labor and shipping costs and for making other misrepresentations in violation of the False Claims Act.

“There is no place for defense contractors who deliberately overbill the government,” said U.S. Atty. Donald K. Stern in Boston.

Neither Infotec’s chief executive, Fernando Niebla, nor any other company official could be reached for comment.

The charges stemmed from the company’s sale of more than $400 million in computer equipment and services to a number of federal agencies.

The allegations were investigated jointly by the FBI and a number of Defense Department units, including the Air Force Office of Special Investigations and the Naval Investigative Service.

Under the settlement, Infotec will pay $800,000 and Niebla will pay $500,000, government officials said.

Infotec recently entered into merger discussions with a subsidiary of Pacer Development Inc., a Billerica, Mass., company that also has significant military contracts, officials said.