Virginia Firm to Pay $4 Million Subcontract Kickback Settlement

July 1, 2021, 4:03 PM UTC

Armed Forces Services Corp. will pay $4.3 million to resolve allegations that three former executives caused the company to violated the False Claims Act by accepting kickbacks in exchange for awarding subcontracts on federal government contracts, the acting U.S. Attorney for the Eastern District of Virginia said.

The contractor, which does business as Magellan Federal, allegedly directed a subcontractor to increase the cost of services provided to various programs supporting injured veterans, the U.S. Attorney’s office said in a Wednesday announcement.

An Armed Forces Services executive allegedly directed the subcontractor to divide the proceeds of the scheme between the subcontractor ...

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