Ohio-based defense contractor ArmorSource, LLC agreed to pay $3 million to settle charges of violating the False Claims Act in connection with a contract to provide combat helmets to the U.S. Army. According to the government, ArmorSource delivered helmets to the Army that were manufactured and tested using methods that did not conform to contract requirements, that failed to meet contract performance standards and that were eventually recalled after several lots failed ballistic safety tests. ArmorSource had subcontracted the manufacturing of the helmets to Federal Prison Industries, Inc. (FPI), which operates under the trade name UNICOR. The allegations originated in a whistleblower lawsuit filed by FPI employees Melessa Ponzio and Sharon Clubb under the qui tam provisions of the False Claims Act. They will receive a whistleblower award of $450,000 from the proceeds of the government’s recovery. DOJ
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