SAN FRANCISCO (AP) — Federal officials filed a lawsuit
Monday alleging that Sprint Communications Inc. overbilled government
agencies $21 million for wiretap services.
The lawsuit filed
federal court in San Francisco alleges that that subsidiary of Sprint
Corp. collected unallowable expenses from the FBI, U.S. Bureau of
Alcohol, Tobacco and Firearms and other government agencies while
carrying out court-ordered wiretaps and other electronic intercepts of
its customers.
Communication companies ordered by courts to
intercept customers’ communications are allowed to recoup the cost of
installing and maintaining the wiretaps.
The lawsuit arises from a
dispute between communication companies and the federal government over
the expense of installing and maintaining wiretaps. In 1994, lawmakers
passed a law requiring communication companies to upgrade their
equipment and facilities to ensure they can comply with court orders
seeking wiretaps of their customers.
The companies and government
tussled for 12 years over who was responsible for those expenses. The
Federal Communications Commission settled the dispute in 2006 in favor
of the government, ruling that companies can’t bill for modifying its
equipment and facilities to more efficiently intercept communications.
The
Department of Justice claims in its lawsuit that Sprint received
payments for such modifications between Jan. 1, 2007, and July 31, 2010.
The DOJ is seeking $63 million, a tripling of its damages it said it’s entitled to if a jury finds Sprint
filed false claims.
A Sprint spokesman said the company denies the allegations.
"Under
the law, the government is required to reimburse Sprint for its
reasonable costs incurred when assisting law enforcement agencies with
electronic surveillance," Sprint spokesman John Taylor said. "The
invoices Sprint has submitted to the government fully comply with the
law. We have fully cooperated with this investigation and intend to
defend this matter vigorously."
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