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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 »

Lockheed Martin

Becker v. Tools & Metals Inc. (Mischarging the Government)

Date: 03/23/2012 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – Air Force

Contracting Party: Defense - Air Force

Court Type: Civil

Amount: $15,850,000

Disposition: Settlement

Synopsis: In November 2007, the United States intervened in a False Claims Act lawsuit alleging the mischarging of millions of dollars by Lockheed Martin Corp.; Lockheed’s vendor, Tools & Metals Inc. (TMI); former TMI president and CEO Todd Loftis and former TMI officer and director Linda Loehr. In 1998, TMI won a contract from Lockheed Martin Aeronautics to supply Lockheed with perishable tools for the manufacture of F-16 and F-22 fighter aircraft. The suit alleged that Loftis and TMI caused false claims to be submitted by Lockheed to the Department of Defense from January 1998 to February 2006. Lockheed was alleged to be independently liable for TMI’s actions due to its reckless failure to adequately oversee TMI. Loehr was alleged to have recklessly failed to carry out her responsibilities as an officer and director of TMI. In December 2005, Loftis pleaded guilty to one count of conspiracy to defraud the United States and was sentenced to seven years in prison. In March 2012, Lockheed settled the lawsuit for $15.85 million.