Hello, Verizon. Please Deposit $93.5 Million To Resolve FCA Allegations

Verizon Communications Inc. has paid the United States $93,525,410.96 to resolve allegations that the company overcharged the General Services Administration (“GSA”) on invoices dealing with government-wide voice and data telecommunications services contracts. 

Verizon subsidiary MCI Communications Services Inc. dba Verizon Business Services was alleged to have invoiced GSA for a variety of federal, state and local taxes and surcharges in violation of the contracts or applicable regulations in connection with the FTS2001 and FTS2001 Bridge contracts. The Justice Department's joint investigation with GSA’s Office of the Inspector General (“OIG”) found that Verizon and MCI submitted false claims under the contracts for the reimbursement of property taxes, common carrier recovery charges and unallowable surcharges, charges that were not directly reimbursable under the FTS2001 contracts.
 
Stephen M. Shea and 2Probe LLC filed the qui tam or whistleblower complaint on behalf of the government. The case is captioned United States ex rel. Stephen M. Shea and 2Probe LLC v. Verizon Communications Inc., Civ. No. 1:07CV00111 (GK) (D.D.C.).