Encinitas

A defense contractor has agreed to pay $150,000 to the U.S. government for overcharging the Navy for “technical services.” The Encinitas-based Validity Corp. agreed to the payment without admitting wrongdoing.

Prosecutors were not clear about the type of technical services the company provided to the Navy. But, in a report released on the settlement, the U.S. attorney’s office said Validity violated its contract with the Navy by using unqualified employees to work on the Navy jobs.

“Validity had knowingly used personnel whose qualifications did not meet those required by the terms of the contract, and the United States had therefore been overcharged for the services,” said a report by the U.S. attorney’s office.

Prosecutors said the company overcharged the government by about $60,000. However, under federal law, Validity was liable for damages up to three times the amount of the overcharge.