Defense spending, at approximately $300
billion dollars, is one of the largest annual
expenditures in the Government's budget.
This explains why many False Claims Act
and Qui Tam cases are directed against defense
contractors.
United Technologies:
In March 1994, United Technologies agreed
to pay $150 million as a result of a Qui Tam
case brought by one of its former executives.
United Technologies' Sikorsky Aircraft Division
billed for work that was not performed in
relation to a contract to provide helicopters.
As a result of bringing the scheme to light,
the relator earned $22.5 million.
Lucas Industries, P.C.: In
October 1995, Lucas Industries agreed to settle
a Qui Tam case filed by its former machinist,
Frederick C. Copeland. Mr. Copeland informed
the Government that Lucas failed to test military
airplane parts and knowingly shipped defective
parts to the Army, Navy and Air Force. As
a result, Lucas paid the Government $88 million
and Mr. Copeland earned $19.3 million.
Teledyne Industries:
In April 1994, Teledyne Industries agreed
to pay $85 million to settle a Qui Tam suit
alleging that it had sold faulty relays to
the United States military. The two relators
worked for Teledyne, one as a manager of quality
control and the other as a testing laboratory
manager. The relators earned a combined total
of $18.5 million for uncovering Teledyne's
scheme.
Litton Industries:
In July 1994, Litton Industries agreed to
pay $82 million to settle a Qui Tam suit brought
by one of its technical directors. The relator
informed the Government that Litton was passing
on unrelated costs for payment by the Government.
The relator earned more than $12 million for
informing the Government of the scheme.
General Electric:
General Electric agreed to pay civil damages
of $59.5 million and another $16 in criminal
fines and restitution after the manager
of its overseas aircraft operations informed
the Government that GE had improperly shifted
costs from approved to non-approved projects
and that a former GE executive had stolen
several million dollars of Government funds.
The relator in that case, Chester Walsh,
earned over $13 million dollars for uncovering
GE's schemes.
Teledyne Industries:
In April 1994, Teledyne Industries paid
$27.5 million to settle a qui tam suit alleging
that it inflated cost data which led to
overpayment from the Government. The relator
in that case, Mr. Kirchhoff, was a pricing
specialist for Teledyne. He earned $6.46
million of the settlement.
Alliant Techsystems, Inc.:
In June 1995, Alliant Techsystems, Inc. agreed
to pay $12 million to settle a Qui Tam suit
brought by five relators who challenged Accudyne
Corp.'s pricing on contracts with the United
States Army to provide electrical parts for
landmines. Accudyne is now owned by Alliant
Techsystems. The relators received $2.64 million
of the settlement.
General Electric:
In 1995, General Electric agreed to pay $7.18
million to settle a Qui Tam suit alleging
that it failed to provide aircraft engines
that met the Government's purchase specifications.
The relator, Ian Johnson, received $1.7 million
of the settlement.