FARMINGTON — An elevator company headquartered in town has agreed to pay the federal government hundreds of thousands of dollars to settle claims it was billing a Tennessee utility company for services it was not providing, officials said.
In a news release, the U.S. Attorney's Office for the Eastern District of Tennessee said Otis Worldwide Corp., also known as Otis Elevator Co. or Otis, has agreed to settle allegations under the False Claims Act.
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Officials said the claims were related to invoices for preventive maintenance services submitted to the Tennessee Valley Authority that were not rendered pursuant to the terms of a contract. Under the settlement,they said, Otis will pay the United States $616,987.
"A contractor, like Otis, has an obligation to submit invoices and seek reimbursement solely for work and services that have been performed as claimed,” U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III said. "This settlement with Otis demonstrates that the United States Attorney’s Office and federal partners like TVA’s Office of the Inspector General are using all tools available to address fraud, waste, and abuse and protect public funds."
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