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Wednesday, April 2, 2014

Sikorsky to Pay $3.5 Million to Resolve False Claims Act Violation

By Andrew Drwiega

Deirdre Daly, United States Attorney for the District of Connecticut, announced on March 31 that Sikorsky Aircraft “will pay $3.5 million to resolve allegations that it violated the False Claims Act arising from the submission of inflated costs in the pricing of spare parts.”

The allegation detailed that from Feb. 7, 2008 through Sept. 8, 2011 the company “failed to disclose accurate, complete and current cost and pricing data to the Army Aviation and Missile Life Cycle Management Command (AMCOM)” for UH-60 Black Hawk spare parts.

Attorney Daly commented: “When determining the prices to be charged to the government, Sikorsky failed to disclose that it had lower prices for certain parts. As a result, the government paid artificially excessive prices for those parts.”

Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), said: “Unethical decisions and instances of fraud occurring within the defense contractor community continue to burden the U.S. defense budget and puts U.S. military readiness at a disadvantage.”

 
Related: Military News
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