Calnet settles allegations of overbilling for $18.1 million

Reston-based defense contractor Calnet will pay the government $18.1 million to settle a case alleging that it overbilled the Defense Department, the Justice Department announced Friday.

The settlement relates to three contracts beginning in 2005 through which Calnet provided translation and linguist services at Guantanamo Bay and other sites, according to the Justice Department’s announcement.

“The United States alleged that Calnet overstated its provisional indirect or overhead rates on each of these contracts and thus submitted inflated claims for payment to the United States,” the press release said.

Kimthy Chao, a former Calnet employee, filed a lawsuit against Calnet in 2009 alleging that from 2006 to 2009 Calnet inflated its cost estimates, according to Zachary Kitts, Chao’s attorney. The False Claims Act allows private citizens to file suit on behalf of the government and share in any recovered money; Chao’s piece of the settlement totals almost $2.7 million, according to the Justice Department.

Kaleem Shah, Calnet’s chief executive and president, returned a phone call Friday afternoon, but declined to answer questions.

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