US contractor Focused Technologies Imaging Services and its owner Charles Tobin and former co-owner Julie Benware, have been ordered to pay $3.1 million dollars for illegally outsourcing government-funded work to a sub-contractor in India.
The company executives have agreed to pay the penalty and fees under an agreement with the New York State Attorney General, after admitting they had violated New York federal laws by outsourcing the work to the sub-contractor based in Mumbai in 2008 and 2009.
Authorities say the company in India that was unaware it had been given the work illegally, fully and voluntarily cooperated with the investigation, and authorities stressed that there is no evidence the Indian company or its employees knew it had obtained the work illegally.
Authorities also say the outsourcing was illegal because Focused Services sent personal information of over 13 million people to the Mumbai subcontractor who was unauthorised to receive the information. The outsourcing also resulted in the failure of Focused to adhere to a rule that over 50 percent of the labour hours of the contract be performed by individuals with disabilities.
Focus and Charles Tobin also produced false records to conceal the outsourcing. They will pay $3.05 million in penalties, fees and costs, and Julie Benware will pay $50,000.