Defense contractor Vector admits criminal fraud

San Diego–based Vector Planning & Services yesterday (January 14) admitted that it criminally defrauded the Department of Defense. The company agreed to pay $6.5 million to resolve civil and criminal cases.

The company admitted that its former chief executive, now deceased, submitted five years' worth of false claims to the department.

After getting reimbursed for direct costs, the company reclassified the costs to make it appear as if they were indirect costs; in essence, the company got paid twice for the same costs.

When faced with a Defense Department audit in 2011, Vector falsified its electronic accounting entires, preparing and backdating false invoices.