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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Aerospace Corporation

Billing for Phantom, Unqualified Employee

Date: 12/06/2011 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Multiple Agencies

Contracting Party: Defense - Air Force

Court Type: Civil

Amount: $2,500,000

Disposition: Settlement

Synopsis: The Aerospace Corporation paid the United States $2.5 million to settle False Claims Act allegations that, for more than seven years, it billed the Air Force for the services of an employee who rarely came to work and was not qualified to perform the technical tasks assigned to him. Aerospace employed William Hunter as an engineer specializing in software quality assurance reviews from 2001 to 2008. When he was hired, Hunter claimed to have a doctorate from Oxford University when, in fact, he only had a high school education. He also filled out time cards showing that he was working full-time hours when he was actually visiting bars, amusement parks, theaters and other non-workplace locations. The government found that Aerospace was aware of Hunter's fraud but still charged the Air Force for his time.