URS unit pays $1.7 mln to settle whistleblower suit
*EG&G pays $1.8 mln to settle whistleblower lawsuit
*Suit accused EG&G of overbilling U.S. Air Force
LOS ANGELES, May 26 (Reuters) - EG&G Technical Services Inc, a subsidiary of URS Corp (URS.N), has paid about $1.8 million to settle a lawsuit accusing it of overbilling the U.S. Air Force for aircraft parts and services, U.S. prosecutors said on Tuesday.
EG&G, a Maryland-based national defense contractor, paid the settlement on May 12 and the case was dismissed a week later. The company did not admit wrongdoing in settling the case, prosecutors said.
James Steffes, an EG&G employee responsible for ordering and maintaining aircraft parts, accused the company in the 2007 suit of conducting a seven-year-long scheme on behalf of itself and aircraft parts broker Danco Aerospace Consulting Inc, prosecutors said.
Between 1997 and 2004, EG&G paid Danco for more than $776,000 in parts that were already in inventory or were never delivered, then submitted fraudulent bills totaling more than $860,500 to the Air Force under a contract that included a fixed profit, prosecutors said.
Steffes will receive $317,729 for filing the qui tam, or whistleblower, action, the government said. (Reporting by Gina Keating)