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Federal contractor settles fraud charges for $2.5 million

Science Applications International Corp. will pay $2.5 million to settle a lawsuit alleging the company defrauded the Air Force by padding its bills on $24 million in contracts.

The suit was originally filed by a former SAIC manager as a qui tam whistle-blower lawsuit under the federal False Claims Act. The manager claimed that the company reaped profits in excess of the allowed 10 percent by falsely inflating its labor costs on environmental testing and cleanup work at Kelly Air Force base in Texas.

The Washington Post ran an April 28, 2005 story on the settlement.

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