Merrill

According to a press release from the U.S. Attorney’s Office for the Eastern District of Michigan in Detroit, Merrill Technologies entered into a subcontract with the primary contractor to perform work for the U.S. Army’s Automotive Tank Command in 2010.

The $5 million settlement announced by U.S. attorneys earlier this week

resolves the government’s allegations that Merrill Technologies subcontract proposal overstated the company’s “cost or pricing data, thereby causing the prime contractor to negotiate and certify the prime contract with TACOM based on inflated costs, which in turn caused TACOM to pay overcharges at the prime and subcontractor levels,” the press release stated.

“Government contractors must be completely above board when seeking payment under government

contracts,” U.S. Attorney Dawn N. Ison said.

“This settlement demonstrates our commitment to hold accountable contractors who cause the government to overpay, and who enrich themselves at taxpayer expense. I would like to commend the leadership at Merrill Technologies Group Inc. for making things right once the government’s concerns were brought to its attention by federal investigators.”

According to Ison, the civil settlement includes

a resolution of claims brought under the whistleblower provision of the False Claims Act by realtor Chad Sibley, which allows a private party to file legal action on behalf of the United States and receive a portion of any recovery.

In this case, Sibley received $900,000 of the agreed upon settlement.

The press releases concluded by stating “the claims resolved by the settlement are allegations only; there has been no determination of liability.”