According to the U.S. Justice Department, General Electric Aviation Systems (GEAS) agreed to pay $6.58 million to resolve allegations that the company violated the False Claims Act (FCA) by submitting false claims to the Department of Defense regarding parts for military aircraft.
Specifically, GEAS contracted with the Department of Defense to provide external fuel tanks for the Navy’s F-18 Hornet fighter jet. The Government alleged that GEAS knowingly provided and billed for fuel tanks that did not conform to contract specifications and that the company failed to utilize proper quality control procedures with regard to over 600 fuel tanks sold to the federal government. It was also alleged that GEAS had falsely misrepresented that it had inspected parts for Army Blackhawk helicopters and that those parts were in conformance with contract specifications. The full press release can be found here.
Defense contracting fraud is a serious problem. However, whistleblowers can be an important tool in combatting this problem if they come forward with knowledge and evidence of fraud. According to DOJ statistics, Department of Defense fraud cases make up the second highest percentage of FCA cases filed, behind only health care cases. This indicates that, while there is a lot of defense contracting fraud going on, encouragingly, there are whistleblowers who are coming forward to make a difference.
If you believe that you have a defense contracting fraud case, please contact the Rabon Law Firm.