Thursday, June 27, 2013

General Electric Fined $6.6 Million for Defrauding Military: Courthouse News Service

SANTA ANA, Calif. (CN) - General Electric Aviation Systems will pay $6.6 million to settle False Claims Act charges of defrauding the government in fighter jet parts, federal prosecutors said. 

The General Electric subsidiary committed the frauds at its manufacturing plant in Santa Ana, the U.S. Attorney's Office said in a statement.

GEAS "knowingly failed to comply with contract specifications and failed to undertake proper quality control procedures" for 641 fuel tanks it made and delivered to the Navy for F/A-18 Hornet strike fighter jets, the U.S. attorney said.

GEAS also lied about tests on 228 parts used for Army UH-60 Blackhawk helicopters, prosecutors said in the statement.

The False Claims Act complaint was filed in Ohio, where GEAS is based, by whistleblower Jeffry Adler.

General Electric reported $145 billion in revenue in 2012, according to the company website.

The fine represents about 24 minutes of GE's income.

General Electric, the sixth largest corporate conglomerate in the United States, is famous for paying no federal taxes.

"The claims resolved by the settlement are allegations only and do not constitute a determination of liability," the U.S. attorney said in his statement.


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