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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 »

Boeing Company

Defective Apache Helicopter Fuzz Busters

Date: 05/16/2003 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – Army

Contracting Party: Defense - Army

Court Type: Civil

Amount: $3,325,000

Disposition: Settlement

Synopsis: Eugene Swensen, a former engineer at McDonnell Douglas (now Boeing), filed a False Claims Act lawsuit in 1998 alleging the company was not properly installing a safety device known as a “fuzz buster” in Apache Attack Helicopters. According to Swensen, the device was not receiving sufficient electrical power, causing false engine failure warnings and numerous unnecessary landings, aborted missions, and unnecessary maintenance. In 2003, Boeing agreed to pay the United States $2.5 million to settle the lawsuit. Boeing also paid Swensen $825,000 to settle his retaliation claim and his legal fees and costs.