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US says Sprint fraudulently charged hidden fees for government wiretaps

04
Mar
2014

The US government is taking Sprint to court for allegedly inflating the cost of performing wiretaps by millions of dollars. In a complaint filed on Monday, the government said Sprint had asked law enforcement agencies for an extra $21 million in reimbursement for its surveillance costs over a period of several years, raising its total bill by around 58 percent. As a penalty for adding “hidden costs” in requests between 2007 and 2010, the Obama administration wants Sprint to pay damages and separate penalties of between $5,500 and $11,000 for each of 29,000 expense claims, a number that could add up to hundreds of millions of dollars. But the government alleges that Sprint also included the cost of upgrading its systems to make this surveillance feasible.

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