Information Technology (IT) is not immune to gouging American taxpayers by making false claims to the government. Cheating scandals have ranged from hiring substandard personnel, falsifying documents, using substandard parts and equipment, and lying about minority and small-business status in an effort to win contract bids.
In 2015, telecom software and services company, NetCracker Technology Corp., agreed to pay $11.4 million and Computer Sciences Corp. (CSC), an IT company, agreed to pay $1.35 million to resolve allegations that they hired individuals without security clearances on a Defense Information Systems Agency (DISA) contract. From 2008 through 2013, NetCracker, which was subcontracted by CSC, allegedly knew the contract required hired individuals to have security clearances, thus resulting in the two companies recklessly submitting false claims for payment.
Cisco Systems and Westcon Group North America agreed to pay the government $48 million to settle claims in 2010 that they provided incomplete and untruthful information to the General Services Administration (GSA) and other federal agencies. The government alleged that Cisco and Westcon knowingly misrepresented information to GSA contracting officers during negotiations, which resulted in defective pricing of Cisco products and false claims.