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Tuesday, January 21, 2025

Military contractor settles for $1.2 million over false claims allegations

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U.S. Attorney Kenneth L. Parker | U.S. Department of Justice

U.S. Attorney Kenneth L. Parker | U.S. Department of Justice

Neuro Stat Analytical Solutions, LLC, a Texas-based company, has agreed to pay $1.2 million to the United States to settle allegations under the False Claims Act. The company had contracted with the United States Air Force for developing psychological assessments and occupational health stress screening tools.

The settlement addresses accusations that Neurostat paid over $1 million between 2016 and 2021 to a federal employee in exchange for preferential treatment regarding various federal contracts. As part of the agreement, Neurostat will cooperate with ongoing investigations into individuals not covered by this settlement.

U.S. Attorney Kenneth L. Parker emphasized the importance of protecting taxpayer resources: “This investigation and settlement show our continued commitment to protect taxpayers’ resources,” he stated. “We will continue to vigorously investigate and address allegations of fraud or inappropriate conflicts by those that seek or perform federal contracts.”

Special Agent in Charge Patrick J. Hegarty from the Defense Criminal Investigative Service highlighted efforts against corruption within the Department of Defense procurement system: “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue individuals and corporations that attempt to corrupt the Department of Defense (DoD) procurement system.”

William Rouse, Special Agent In Charge at OSI Procurement Fraud Det 4, Wright-Patterson AFB, expressed pride in collaborating with various agencies: “Department of the Air Force OSI is proud to partner with the US Attorney’s Office, DCIS, and Air Force Acquisition Fraud Counsel, to protect the integrity of defense contracting and America’s warfighter.”

Assistant United States Attorney Matthew J. Horwitz represented the U.S., with assistance from attorneys Sarah Schild and Kate Rottmayer from the Air Force Material Command Law Office's Procurement Fraud Law Division.

The settlement does not imply an admission of liability by Neurostat nor a concession by the United States regarding its claims.

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