Company settles investigation by paying federal government

A California-based company accused of filing a false claim involving testing equipment for nuclear missile technology has agreed to pay more than a half-million dollars to the federal government to settle an investigation into alleged wrongdoing on the company's part.

Data Physics Corp., a San Jose, Calif., firm, agreed to the arrangement this week.

The Defense Criminal Investigative Service and the Air Force Office of Special Investigations at Hill Air Force Base began checking into the firm's activity after Data Physics filed a bill for approximately $430,000, but did not deliver a part of the testing equipment that the Air Force had contracted for, according to the U.S. Attorney's Office.

Federal prosecutors also contend that the company refused to repay the money it had received despite the fact that the testing component was not delivered.

The U.S. Attorney's Office alleged that Data Physics did not provide a legitimate purchase order for the part, which the office contends is a violation of the False Claims Act.

"The government is engaged in billions of dollars of contracting in Utah, and we will work tirelessly to ensure contractors are held accountable when the taxpayers don't receive the benefit of the contract," said U.S. Attorney for Utah Brett L. Tolman.