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Military Contractor Settles Federal Overbilling Case Sparked by Orlando Whistleblowers

July 9, 2013 | WMFE - Defense contractor CyTerra has settled with the US Department of Justice nearly a decade after two former Orlando employees say they discovered the company was overcharging the US military. Recently-released court documents show CyTerra has agreed to pay $2 million.

The Justice Department lawsuit accused CyTerra of padding the prices of handheld landmine detectors it was contracted to make for the US Army. The alleged overbilling was discovered in the Massachusetts-based company’s production facility in Orlando, according to two former CyTerra financial managers who later went to the federal government with their information. 

Kevin Bartczak and Keith Aldrich say they first stumbled onto evidence of the inflated pricing in 2004. After they reported it to the company, the pair state in court filings, they were fired in retaliation. Their lawsuits against CyTerra are still pending, but under federal law, Bartczak and Aldrich will receive a portion of the $2 million CyTerra is paying the US Justice Department. They’ll split $361,000.  

Under the terms of the settlement, CyTerra does not have to acknowledge overbilling. Company representatives deny the claims, saying they settled to avoid "protracted litigation."



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