Military contractor to pay $1.2 million to United States to settle False Claims Act allegations

Source: Office of United States Attorneys

DAYTON, Ohio – Neuro Stat Analytical Solutions, LLC (Neurostat), a Texas company that contracted with the United States Air Force to, among other things, develop and implement psychological assessments and occupational health stress screening tools, has agreed to pay $1.2 million to the United States to settle False Claims Act and related allegations.

The settlement resolves allegations that Neurostat paid more than $1 million between 2016 and 2021 to a federal employee for preferential treatment related to various federal contracts awarded to or performed by Neurostat.  As part of the settlement, Neurostat agrees to fully cooperate with the United States’ investigation of individuals not included in the settlement.

“This investigation and settlement show our continued commitment to protect taxpayers’ resources,” said U.S. Attorney Kenneth L. Parker. “We will continue to vigorously investigate and address allegations of fraud or inappropriate conflicts by those that seek or perform federal contracts.”

“Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue individuals and corporations that attempt to corrupt the Department of Defense (DoD) procurement system,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the DoD’s Office of Inspector General.  “Investigating schemes that undermine the integrity of the Defense Health Agency, which manages the healthcare program and hospitals for military members and their families, is a top priority for the Defense Criminal Investigative Service.”

“Department of the Air Force OSI is proud to partner with the US Attorney’s Office, DCIS, and Air Force Acquisition Fraud Counsel, to protect the integrity of defense contracting and America’s warfighter,” said William Rouse, Special Agent In Charge, OSI Procurement Fraud Det 4, WrightPatterson AFB. “We will continue to join together and hold those accountable who attempt to defraud the US government of the resources provided by American taxpayer.  

Assistant United States Attorney Matthew J. Horwitz represented the United States in this settlement. Air Force Material Command Law Office, Procurement Fraud Law Division attorneys Sarah Schild and Kate Rottmayer also helped pursue this matter.

The settlement agreement is neither an admission of liability by Neurostat nor a concession by the United States this its claims are not well founded.

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