Calnet Inc. Agrees To $18.1 Million Settlement Under The Federal False Claims Act, Whistleblower Receives $2.67 Million

Calnet Inc., which provided intelligence analysis, information technology and translation services to the Department of Defense (DoD), agreed to pay $18.1 million to settle a claim that the company inflated its rates on three contracts with the DoD from 2006 to 2010.  The contracts were  to provide translation services to the federal government at Guantanamo Bay, Cuba among other places.   The suit was initiated by a former Calnet employee, Kimthy Chao.  Mr. Chao served as the Chief Financial Officer for Calnet from 2005 until 2010.  For his role in bringing the fraudulent actions of Calnet to the attention of the Federal Government, Mr. Chao was awarded $2.67 million dollars under the provisions of the Federal False Claims Act.

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