Boeing Settles False Claims for $23M; Whistleblowers to Get $3.9M

The Boeing Company has agreed to pay $23 million to resolve allegations that it knowingly submitted or caused the submission of false claims to the U.S. Air Force in connection with maintenance contracts, the U.S. Department of Justice announced last week.  Boeing is a giant in the aerospace and defense industries.

The government alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Aerospace Support Center in San Antonio, Texas.  The C-17 Globemaster aircraft, which is both manufactured and maintained by Boeing, is one of the military’s major systems for transporting troops and cargo throughout the world.  The government alleged that the company knowingly and improperly billed a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts.

The lawsuits were originally brought by present and former Boeing employees Clinton Craddock, Fred Van Shoubrouek, Anthony Rico, and Fernando de la Garza under the whistleblower provision of the False Claims Act.  The Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  The whistleblowers in this case will receive $3.91 million as their portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.