General Electric Aviation Systems Settles Contract Fraud Claims for $6.58M

Ohio-based General Electric Aviation Systems (GEAS) has agreed to pay $6.58 million to resolve allegations that the company knowingly submitted or caused the submission of false claims in connection with contracts made with the Department of Defense, the U.S. Department of Justice announced today.  GEAS manufactures and sells integrated systems and components for commercial, corporate, military and marine aircraft.

GEAS was contracted to manufacture and deliver to the Navy external fuel tanks for use on the F/A-18 Hornet strike fighter jet, which GEAS manufactured at its plant in Santa Ana, California.  In March 2008, a GEAS-manufactured tank failed government testing, which led to a multi-year investigation by local and federal agencies.  As a result, the United States alleged that GEAS knowingly failed to comply with contract specifications and failed to undertake proper quality control procedures in connection with 641 external fuel tanks it delivered to the Navy between June 2005 and February 2008.

The settlement also resolves allegations that, between June 2010 and June 2011, GEAS knew that it falsely represented to another government contractor that GEAS had performed a complete inspection of 228 drag beams to be used on Army UH-60 Blackhawk helicopters, and that those 228 drag beams conformed to all contract specifications. 

Allegations about GEAS’s misconduct at the Santa Ana facility were originally included in a lawsuit filed by Jeffrey Adler, a former GEAS employee, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows a private citizen with knowledge of fraud against the government to sue on behalf of the government and claim a share of the recovery.  Adler’s share of the settlement has not yet been determined.

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.