A defense contractor agreed to a $115 million fine in the largest Pentagon fraud settlement after admitting it billed the Defense Department for things like baby-sitting, country clubs and servants for its executives, officials said.
In agreeing to plead guilty to defrauding the Pentagon by overbilling for airplane parts, Sundstrand Corp. also said its employees wined and dined Defense Department officials and then submitted those expenses for reimbursements, U.S. prosecutors said Wednesday.No company or Pentagon employee has been charged in the overbillings, which spanned from 1980-86, but Sundstrand agreed to cooperate with investigators, said U.S. Attorney Anton Valukas. The investigation should be completed by January, said Valukas, who declined to estimate how much Sundstrand's actions cost the government.