In December 2005, BearingPoint executed a settlement agreement with the Civil Division of the U.S. Department of Justice to settle allegations the company overbilled for travel expenses on government contracts, in violation of the False Claims Act. The company was alleged to have received secret rebates from preferred providers in the travel industry while billing the government for the full face value. Pursuant to the settlement agreement, the company paid almost $15.5 million (including attorneys’ fees). The government pursued a recommendation for suspension or debarment which was denied in October 2006.