Teledyne ESP Resolves False Claims Act Allegations Involving the Sale of Non-Conforming Parts to the Department of Defense, Agrees to Pay $1.5M

By the Constantine Cannon Whistleblower Team

On January 5, the DOJ announced that Teledyne RISI Inc., also known as Teledyne Electronic Safety Products (Teledyne ESP), an aerospace and defense electronics company in Chatsworth, California, has agreed to pay $1.5 million to settle allegations of violating the False Claims Act by supplying aircraft parts to the military that did not meet contract specifications.[1]

What Allegations Did This Settlement Address?

This settlement addresses allegations that Teledyne ESP, as a subcontractor for U.S. Navy contracts, knowingly caused false claims to be submitted by manufacturing Digital Recovery Sequencer (DRS) units with a microelectronic part that did not meet Navy-approved specifications. These DRS units were part of ejection seat systems in numerous military aircraft.[2]

Teledyne ESP allegedly sourced the non-conforming parts from a third-party broker that was not an Original Equipment Manufacturer or an authorized reseller. Between November 2011 and June 2012, the DRS units with the non-conforming part were delivered to the Navy and installed in military aircraft ejection seat systems.[3]

U.S. Attorney Bryan Stirling’s Comment on the Case

According to U.S. Attorney Bryan Stirling for the District of South Carolina, “Our military should not only expect the correct, conforming parts for the equipment they need to serve and defend our country, they deserve that proper equipment. The U.S. Attorney’s Office is proud to support this multi-agency investigation to protect our service members from risks introduced by non-conforming parts in our military supply chains.”[4]

Government Contract Fraud and Whistleblowers

Whistleblowers may bring cases based on fraud in government contracting, often known as procurement fraud. If the federal government is the contracting party, then a whistleblower may bring a claim under the federal False Claims Act.

False Claims Act Whistleblowers

Under the qui tam provisions of the False Claims Act, private parties can bring lawsuits on behalf of the government against those that defraud the government. Successful whistleblowers may receive up to 30% of the government’s recovery.

Our Firm Helps Whistleblowers

Constantine Cannon attorney Ginger Buck commented: “Whistleblowers often feel obligated to speak up if they have any knowledge of government contract violations. Enforcement is essential. Our firm has extensive experience representing procurement fraud whistleblowers, and we encourage whistleblowers to reach out to us with potential claims.”

If you would like to learn more about what it means to be a whistleblower under the False Claims Act or if you think you have a potential case, please contact us. We will connect you with an experienced member of the Constantine Cannon Whistleblower Team for a free and confidential consultation.

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Sources:

[1] https://www.justice.gov/opa/media/1422336/dl

[2] https://www.justice.gov/opa/pr/teledyne-electronic-safety-products-agrees-pay-15m-resolve-false-claims-act-allegations

[3] Id.

[4] Id.

Tagged in: False Claims Act, Government Procurement Fraud,