CENTRE COUNTY, Pa. (WTAJ) — KCF Technologies, Inc., has agreed to pay the U.S. over $1.2 million to resolve civil liability for fraud allegations involving taxpayer money.

It is alleged that KCF, a tech company that develops and commercializes products for industry and military use, billed labor time spent on commercial contracts improperly to contracts it had both with the Department of the Navy and the Department of the Army between 2016 and 2019, according to U.S. Attorney John C. Gurganus.

“Investigating procurement fraud allegations is a top priority for the DoD Office of the Inspector General’s Defense Criminal Investigative Service (DCIS),” Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office said. “This settlement reflects our commitment to working with our law enforcement partners and the U.S. Attorney’s Office for the Middle District of Pennsylvania to ensure contractors who misuse taxpayer funds are held accountable.”

Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office added that NCIS and its federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by rooting out procurement fraud and its source.

In addition to DCIS and NCIS, it’s reported the case was also investigated by the Major Procurement Fraud Field Office, U.S. Army Criminal Investigation Division (CID) under the leadership of Special Agent in Charge Scott Moreland.

The Department of Justice said KCF cooperated with the investigation. The Settlement Agreement is neither an admission of liability by KCF nor is it a concession by the U.S. that its claims are not well-founded.

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The investigation was handled by Assistant U.S. Attorney Tamara Haken and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.