Boeing Settles for $23 Million With Federal Government for Alleged False Labor Claims
Boeing agreed to pay the federal government $23 million Friday to settle a case of allegedly submitting false claims for labor charges at their San Antonio location, a suit that was brought by four whistle blowers and former employees
Of the total settlement, the employees, Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza, who filed the suit in federal court in San Antonio under the False Claims Act, will receive $3.9 million, according to the Department of Justice.
The Boeing Co. was billing the Air Force improperly for maintenance of one of the most important systems for transporting troops and cargo: the C-17 Globemaster aircraft.
The government alleged Boeing knowingly billed the government for time its mechanics spent at meetings not directly related to the contracts, thereby violating the contract requirements.
"Defense contractors are required to obey strict accounting standards when submitting billing for work performed on government contracts," U.S. Attorney Robert Pitman for the Western District of Texas said in a statement Friday.
Acting Assistant Attorney General Joyce R. Branda for the Justice Department's Civil Division said, "Government contractors who seek illegal profit at the expense of taxpayers will face serious consequences."
Boeing is aerospace and defense industry giant, which has various contracts with the federal government, and is headquartered in Chicago.
The Seattle Times reported that at the end of 2013, Boeing claimed the title of the world's largest plane-maker for a second straight year, and net sales were worth about $202 billion at list prices.
Friday's settlement was not the first time Boeing had been accused of fraudulent practices in dealing with the federal government's contracts.
In 2006, the company settled for a record $615 million over accusations that it was able to secure a government contract for the Air Force's Evolved Expendable Launch Vehicle (EELV) program and some contracts with NASA by using unfair methods to obtain competitors' information, according to the Justice Department.
Then-Deputy Attorney General Paul J. McNulty said similar words echoed by Branda -- that those who attempt to dupe the federal government and taxpayers will face harsh consequences.
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