Lockheed to pay $2M to settle allegations it overbilled govt

ATLANTA (AP) -- Federal prosecutors in Atlanta say Lockheed Martin Corporation has agreed to pay $2 million to settle allegations it overbilled the government for fuel it used while manufacturing planes for the U.S. Air Force.

Prosecutors say Lockheed manufactured C-130 aircraft for the Air Force at its Marietta facility between 2006 and 2013.

The contracts provided for the government to give the company 22,000 gallons of fuel per aircraft. That could be used for engine runs, fuel operations and test flights. Once Lockheed used that up, Lockheed was responsible for buying any additional fuel.

But prosecutors say an investigation revealed that Lockheed routinely used more than 22,000 gallons of fuel but failed to reimburse the government for the excess. Prosecutors say evidence also suggests Lockheed used the fuel for unrelated projects.