Local defense contractor settles with feds for $2.08 million

Colorado Springs-based The Macalan Group, a security contractor, will pay the government $2.08 million and relinquish claims to an additional $744, 969 to settle allegations that the company submitted false claims in connection with a federal contract.

Formerly known as NEK Advanced Securities Inc., the company had a contract with the Joint Improvised Explosive Device Defeat Organization, according to U.S. Attorney John Walsh.

The contract required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to work to defeat improvised explosive devices. The government alleged that NEK submitted false invoices for payment in connection with the contract, according to a press release from the U.S. Attorney’s office.

NEK agreed to pay the money and turn over both weapons and accessories acquired under the government contract.

“No government contract is more important than one that supports the security efforts of our nation overseas,” Walsh said.  “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”

“This settlement demonstrates our commitment to pursue contractors who fail to accurately bill the government,” said Stuart F. Delery, assistant attorney general for the civil division.  “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”