G-Men Chase Sprint'er Over Inflated Wiretap Billing

Sprint Corp. overcharged the Federal Bureau of Investigation, the Drug Enforcement Administration and other law-enforcement agencies by more than 50% to facilitate eavesdropping on phone calls, the U.S. Justice Department alleged in a lawsuit filed Monday.

The suit accuses Sprint of inflating the bills it submitted to federal law-enforcement agencies for wiretaps and other surveillance services to cover capital expenditures necessary to respond to the requests—something prohibited by federal law and Federal Communications Commission rules, according to the complaint filed in federal court in San Francisco.

Sprint covered up the fact that the extra charges were included in the bills paid by the FBI and others by disguising them as regular surveillance costs, the suit alleges. As a result, the federal government overpaid Sprint by $21 million over a period of three and a half years.
Sprint said it didn't break the law and will fight the charges. (more)