Taledo Corp. Agrees to pay $6.49 Million to Resolve Lawsuit Alleging the Company Submitted False Claims to the Transportation Security Administration

On Tuesday, August 16, 2011, the US Department of Justice announced that Taledo Corporation has agreed to pay 6.49 million dollars to the United States Government.  The Department of Justice alleged that Taledo Corp. knowingly caused false claims to be submitted to the Transportation Security Administration (TSA) of the Department of Homeland Security (DHS).

In 2002 Taledo Corp., based in Dublin California, subcontracted with CPS Human Resources to provide supporting software in a job CPS had with TSA.  Taledo stated in its subcontract that it would charge its commercial list rates with some discounts.  According to the allegations, Taledo’s commercial list rates were based on a customer’s number of employees, but Taledo charged TSA a rate that was not based on this number.  If Taledo had based its rate on the agency’s number of employees, the rate they charged TSA would have been lower. 

 The qui tam lawsuit was brought on behalf of the government under the False Claims Act by a former employee who blew the whistle on Taledo Corp’s fraudulent behavior.

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