Alcatel-Lucent agrees to pay $4.2M to settle fraud claims

Monday - 9/24/2012, 9:00am EDT

The global telecom Alcatel-Lucent has agreed to pay $4.2 million to settle claims that it defrauded the Army.

Federal prosecutors said the company submitted misleading test certificates concerning the design and construction of a 911 emergency response system in Iraq.

The Justice Department said it is seeking to recover losses whenever a contractor makes a false claim.

But prosecutors said that was especially critical in "hot spots" like Iraq, where it's hard and dangerous to verify invoices.

The Army awarded Alcatel-Lucent the quarter-billion-dollar contract in 2004. The company's former contract manager blew the whistle and he'll get a share of the settlement.

This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.