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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

AT&T Inc.

Overbilling the Federal Government for Telephone Services

Date: 06/27/2006 (Date of Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Justice

Contracting Party: GSA

Court Type: Civil

Amount: $2,946,000

Disposition: Settlement

Synopsis: AT&T Corp. subsidiary AT&T Communications-East, Inc. paid the United States nearly $3 million to resolve a False Claims Act lawsuit alleging that it defrauded federal agencies by overcharging them for telephone service from December 1998 through December 2001. AT&T provided telephone services to the government as part of the FTS2000 contract administered by the General Services Administration. AT&T was alleged to have charged agencies more than the actual costs and fees AT&T paid to local telephone companies for access to their phone lines.