Boeing to pay $25M to settle fraud case at drone unit Insitu that sparked whistleblower complaint

SEATTLE TIMES

Boeing’s drone subsidiary, Insitu, will pay $25 million to settle a federal lawsuit accusing it of fraudulently overcharging the government on no-bid military contracts by billing for new parts but using recycled ones.

The whistleblower who brought the original case, D R O’Hara, who was fired by Boeing, will get $4.625 million of that sum for uncovering the alleged fraud. Insitu will also have to pay O’Hara’s legal expenses.

The Department of Justice accused Insitu of “knowingly submitting materially false cost and pricing data” for contracts to supply surveillance drones to both the U.S. Special Operations Command (SOCOM) and the Navy, according to a statement Tuesday. read more »

Eastern District of California Obtains Nation’s First Civil Settlement for Fraud on Cares Act Paycheck Protection Program

DOJ

The first civil settlement to resolve allegations of fraud against the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been entered into today by the Department of Justice, U.S. Attorney McGregor W. Scott announced.

This settlement resolves claims the misconduct violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. read more »

SEC Awards Nearly $600,000 to Whistleblower

SEC

The Securities and Exchange Commission today announced an award of nearly $600,000 to a whistleblower whose tip led to the success of an enforcement action.  The whistleblower substantially contributed to an open investigation by providing detailed and highly valuable information resulting in critical investigative leads.

“The whistleblower met with staff multiple times and provided substantial assistance to the investigation that led to the SEC’s enforcement action,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “Since the beginning of October, the Commission has awarded 28 individuals over $176 million in whistleblower awards, which already surpasses the total dollar amount awarded in the entirety of any prior fiscal year. read more »