AUGUSTA — Employment Specialists of Maine, Inc., a city-based agency which provides services to disabled people, will pay more than $125,000 to settle claims it employed a registered nurse who was banned from participating in federal health care programs.

Documents in U.S. District Court identify the nurse as Shirley Frazier, who worked for the agency from January 2006 through June 2007. It was not clear why Frazier was an excluded provider. No one by that name is listed as licensed as a registered nurse in Maine.

The agency agreed to the payment to settle claims of improper billing to MaineCare. The federal government had sued the agency, saying it had access to lists of excluded individuals.

A news release from the U.S. Attorney’s Office announcing the settlement Monday said the agency cooperated in the investigation, which was handled by the U.S. Department of Health and Human Services, the Office of Inspector General and the Maine Attorney General’s Office.

Under the terms of the settlement, the agency is allowed to pay the money over time.

Employment Specialists of Maine has offices in Augusta, Auburn and Bangor.