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Federal Contractor Misconduct Database (FCMD)
The federal government routinely awards contracts to companies with
histories of misconduct, including
…
contract fraud and other
violations. POGO believes that providing this website will help to
improve contracting decisions and increase public knowledge of how
the government spends billions of taxpayer dollars each year.
Read more…
Submitting False Invoices on Jet Engine Contract
The U.S. District Court for the Southern District of Ohio found that United Technologies subsidiary Pratt & Whitney had violated the False Claims Act by submitting inflated invoices for jet engines it supplied to the Air Force in the 1980s. Because the court found the government had not suffered any actual damages, the court entered judgment in favor of the government for the statutory maximum fine of $10,000 per invoice submitted, for a total of $7,090,000. In November 2010, the U.S. Court of Appeals for the Sixth Circuit affirmed the district court’s liability determination but remanded the case to allow the government to pursue its common law contract claims and for a recalculation of damages. On remand, the court ordered United Technologies to pay $664 million in damages, penalties and interest. In April 2015, the Sixth Circuit found that the government failed to prove damages beyond the $7 million, reversed the district court and remanded the case. In June 2016, the district court awarded $11 million in penalties, interest, and disgorgement of profits.
- Misconduct Type
- Government Contract Fraud
- Enforcement Agency
- Defense – Air Force
- Contracting Party
- Defense - Air Force
- Court Type
- Civil
- Disposition
- Judgment Against Defendant
- Date of Final Judgment
- 6/22/2016