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A 13 million dollar fine for Russian software experts

NetCracker Technology Corp. and Computer Science Corporation will pay a fine of $12.75 million to settle claims against them out of court. This saga has lasted since 2011 when John Kingsley, a NetCracker manager informed the US Department of Defense that Russians took part in developing and installing software for the Pentagon.

NetCracker was the primary contractor of the Department of Defense from 2008 to 2013. It was in charge of developing and installing software. During this period the company and its partner Computer Science, repeatedly hired Russian software experts without the security clearances required by a contract with the Pentagon. As a result, Russian specialists, many of whom were not US citizens, could get access to secret information and had an opportunity to infect the Pentagon’s networks with malware and spy programs.

According to Kingsley, both companies were motivated by the desire to save money because Russian software experts charge much less than their American counterparts with the same qualifications. Indicatively, Kingsley may not have been motivated by patriotic sentiments alone. Under the US False Claims Act, he will collect $2.4 million as a whistleblower for reporting security clearance lapses upon the resolution of the case.

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