January 12, 2021

Boeing-owned drone maker Insitu Inc. has agreed to pay $25 million to resolve a whistleblower-brought suit alleging violations of the False Claims Act.  According to D.R. O’Hara, a former executive at Insitu, the company knowingly submitted cost and pricing data for new parts, but used recycled parts to build drones being supplied to the U.S. Navy and U.S. Special Operations Command on seven contracts.  The alleged misconduct ran from 2009 to 2017.  For exposing the fraudulent scheme, Mr. O’Hara will receive $4.6 million of the settlement proceeds.  USAO WDWA

Tagged in: Defense Contract Fraud, FCA Federal, Whistleblower Case, Whistleblower Rewards,