Government contract to pay $4 million over false claims

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ST. LOUIS (AP) _ A suburban St. Louis contractor will pay $4 million to settle a lawsuit and allegations that it submitted false claims for medical items to the U.S. Department of Veterans Affairs and Department of Defense.

The U.S. Attorney’s office in St. Louis on Tuesday announced the settlement with ICP Medical LLC over allegations that the company concealed the Chinese origin of medical supplies and inflated prices.

The government alleged that ICP removed the “Made in China” designations from body bags and other medical supplies, put them in new boxes and added U.S. flag stickers to some packages. Sourcing goods from China is typically prohibited for government contractors.

ICP president Brian Sanders says any improper conduct occurred under prior management and involved employees no longer with the company.