Manufacturer Pays $7.5 Million To Resolve Qui Tam Claim

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September 4th, 2007

"Man Exposes Manufacturer For Defrauding the Government"

A company that manufactures marine parts and valves for use on Navy and Coast Guard vessels recently resolved a qui tam claim for $7.5 million, according to a statement by the U.S. Department of Justice.

“The settlement demonstrates our commitment to ferret out fraud and abuse that threaten the integrity of our defense procurement programs,” said U.S. Attorney Donald J. DeGabrielle, Jr.

Fraud Against the Government

The lawsuit, filed on behalf of the government by a former employee of the Crane Company, alleged that the manufacturer deliberately violated various government laws and regulations including the Berry Amendment and the Buy America Act—both of which require the government to purchase domestically made products when available.

“Today's action will help ensure that the exacting quality standards called for by the government endorsements will be met by contractors in the future,” said DOJ attorney Peter D. Keisler.

The former employee alleged in his complaint that the company intentionally disregarded these requirements and did so as early as 2003. Under the False Claims Act, the man who filed the claim will receive a portion of the recovery for exposing fraud against the government .

(Source: Department of Justice website)

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