SACRAMENTO, Calif. (AP) — A U.S. Air Force subcontractor has agreed to pay $1 million to settle government allegations that it padded its bills.

The U.S. attorney’s office announced the settlement Monday with Alpha Research & Technology Inc.

The government alleged that between 2006 and 2011, the Sacramento-area company submitted inflated subcontracting proposals to Boeing, Raytheon and other firms for Department of Defense work.

The government alleged that the proposals included millions of dollars in personal expenses for the company's owners, Donne and DeAnn Smith, including the costs of a lavish home and luxury cars.

In making the settlement, Alpha doesn’t acknowledge any wrongdoing.

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