Sprint Allegedly Overbills Feds For Spying Services

There has been a lot of press in the past year about the various government programs in place for the United States to snoop on its own citizens.  Well, apparently, all that snooping is far from free, and the federal government is none too happy with one of its bills.  Federal officials filed a lawsuit earlier this week alleging that Sprint Communications overbilled the FBI, U.S. Bureau of Alcohol, Tobacco and Firearms, and other government to the tune of $21 million for wiretap services. Communication companies ordered by courts to intercept customers’ communications are allowed to recoup the cost of installing and maintaining the wiretaps.  However, the federal government and communications battled for years over who covers the cost to upgrade their equipment and facilities to ensure they can comply with court orders seeking wiretaps of their customers.  In 2006, the Federal Communications Commission settled the dispute in favor of the government, ruling that companies can’t bill for modifying their equipment and facilities to more efficiently intercept communications. Shocking! The lawsuit filed in federal court in San Francisco alleges that Sprint fraudulently billed for such expenses relating to equipment and facilities, which it knew was not billable. The tab from 2007 to 2010 amounted to $21 mil.  Of course, like any good Plaintiffs, the government doesn’t just want its $21 million back from the over-billing.  The feds are seeking treble damages, which would amount to approximately $63 million.  Sprint has denied any wrongdoing. This whole thing just seems silly.  Maybe Sprint should just suggest that the federal government join up with Russia for a wiretapping Framily Plan.  That might save Uncle Sam a little money.  Because “You don’t have to be family, to be Framily.”

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