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Md. Firm Pays $702K In Army Overbilling Case

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BALTIMORE (AP) — A defense subcontractor based in Ijamsville is agreeing to a $702,000 settlement of federal charges it overbilled the Army for work on mobile communications systems.

The Justice Department and military investigators announced the deal Tuesday with Engineering Systems Solutions Inc. and owner Vishnampet Jayanthinathan, also known as Jay Nathan.

Nathan would pay $95,000 of the total settlement.

The contract specified higher pay for employees with certain qualifications. The federal charges stemmed from a former employee’s complaint in 1998 that the company had billed at the higher rate for workers who lacked those qualifications.

The firm had the contract from January 2004 through December 2007.

The company’s lawyer says the firm has a new management team and looks forward to getting more government business.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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