Defense Contractor Fraud

A settlement has been reached to resolve False Claims Act Allegations by Lockheed Martin Integrated Systems (LMIS) who is accused of overbilling the government for work performed by Lockheed Martin Integrated Systems employees who lacked required job qualifications. 

The alleged labor mischarging occurred on the Rapid Response (CR2) contract and the Strategic Services Sourcing (S3) contract, both issued by the U.S. Army Communication and Electronics Command (CECOM).  CECOM is located at Fort Monmouth, New Jersey, and at the Aberdeen Proving Group in Maryland.  The purpose of the CR2 and S3 contracts is to provide rapid access to products and services to be provided to the Army in Iraq and Afghanistan. Individual task orders then are separately negotiated, based on these contracts, to quickly meet the needs of CECOM.  LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to the United States at the rates of more qualified employees.  The overbilling allegedly resulted in greater profit for LMIS.

A settlement has been reached to reolve allegations that Sikorsky Aircraft submitted inflated costs for spare parts to the U.S. Army. Sikorsky Aircraft manufactures Black Hawk helicopters and spare parts for the helicopters for the U.S. Military and for friendly nations. 

Sikorsky Aircraft agreed to pay $3.5 million to settle these allegations. 

The government alleged that from February 7, 2008 through September 8, 2011, Sikorsky failed to disclose accurate, complete and current cost and pricing data to the Army Aviation and Missile Life Cycle Management Command (“AMCOM”).  AMCOM is one of the purchasing commands of the Army that is charged with purchasing spare parts for the Black Hawk.

A settlement has been reached in a whistleblower class action lawsuit brought against NetApp Inc who is accused of making false statements to the General Services Administration about the discounts it was giving other customers and failed to extend proper discounts to the government.

A settlement has been reached in a whistleblower class action lawsuit brought against The Boeing Co who is accused of improperly installing insulation blankets on KC-10 airplanes and overcharging the U.S. Air Force for services it provided.

The Boeing Co. has agreed to settle the matter for $25 million – $18.4 million of which will be paid up front and the remaining $6.6 million will be paid by performing in-kind services to the Air Force which uses KC-10 Extender planes to refuel aircraft during flight as part of the United State's operations in Afghanistan and Iraq. The whistleblowers from the originally filed civil cases will receive $1.3 million.

The 2006 lawsuit, filed by Boeing mechanics, alleged Boeing defectively installed insulation blanket kits in the KC-10s while performing depot maintenance work at the Boeing Aerospace Support Center in San Antonio. A subsequent two-year investigation by the Defense Department's Criminal Investigative Service and the Air Force Office of Special Investigations also uncovered that Boeing overcharged the government for installing the kits.