Health IT company Capital Technology Information Services has agreed to pay the U.S. $1.7 million to resolve claims that it billed the National Institutes of Health for "unallowable" reimbursement costs.
The Rockville, Md.-based tech company received a five-year grant from the NIH to study and mitigate health disparities, but allegedly billed the NIH for costs pertaining to luxury vehicles, residential mortgage payments, housekeeping services and a wedding, according to a June 16 press release from the U.S. Attorney's Office of the District of Maryland.
The costs were presented to the NIH as "necessary to the overall operation of the business," according to the release. As part of the settlement agreement, two whistleblowers will receive $171,294.94 collectively and the other will receive $171,294.94.