Verizon Overcharges the Government, Gets Slapped With $93 Million Fine

Verizon is once again in trouble over billing procedures. Just 6 months after being forced to pay back customers for incorrect billing practices the company today settled a claim with the U.S. Government for $93.5 million. The fine comes after Verizon overcharged the General Services Administration (GSA) for taxes and various surcharges.

The overcharges come from the company’s MCI Communications Services unit which provided the GSA with both voice and data services. The GSA provides federal agencies with much of their communications.

The charges includes claims that Verizon submitted falls reimbursements for property taxes, recovery charges and surcharges which were not allowed.

Verizon spokesman Peter Lucht said in an interview with Bloomberg:

“Verizon cooperated closely with the government throughout the process,” while adding, “It was in the best interest of all parties to settle the matter. The government and Verizon disagreed on whether certain fees could be charged under the contract, so their settlement concludes the efforts by both parties to resolve the dispute amicably.”

“The Best interest of all parties” seems like a highly doubtful statement, but $100 million could definitely be used by our governmental agencies, that is until Verizon figures out a way to sidestep that amount with tax deductions over the next year.