Articles Posted in Fraud in federal contracting

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The settlement caps the DOJ’s nearly 20-year pursuit of False Claims Act lawsuits, prompted by a whistleblower complaint, against companies in the body-armor supply chain involving Zylon vests

Honeywell International, Inc. (Nasdaq: HON) has agreed to pay $3.35 million to resolve allegations it violated the False Claims Act by supplying defective ballistic material for bulletproof vests purchased by the U.S. Department of Defense and other federal agencies.  The settlement ends the DOJ’s decades-long pursuit of False Claims Act lawsuits against companies in the body armor supply chain that allegedly continued to manufacture, market, and sell Zylon bulletproof vests even after becoming aware that Zylon rapidly degraded in hot and humid conditions, compromising its ability to stop bullets.

Dangerous degradation
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Company allegedly gave government inflated cost and pricing data when negotiating no-bid contracts for drone-related military projects
Insitu drone.

Insitu drone. The company settled False Claims Act allegations that it inflated the prices of parts sold to the U.S. Navy and the Special Operations Command (SOCOM).

Insitu, Inc., a subsidiary of aerospace and defense contractor Boeing, has agreed to pay $25 million to settle a False Claims Act lawsuit alleging it defrauded the government by passing off recycled and reconditioned drone parts and components as new under defense contracts with the U.S. Navy and the Special Operations Command (SOCOM). The former Insitu employee who filed the qui tam lawsuit and thereby exposed the fraud received a whistleblower reward of $4.6 million.