Sacramento Defense Contractor Fined $2M to Settle Whistleblower Fraud Allegations
Lying about the cost of materials and the wages paid to workers under a government contract is an act of fraud, plain and simple. Government defense contractors and procurement companies who engage in this conduct should be banned from government work. — Shayne Stevenson
"Composite Engineering Inc., a Sacramento-based subsidiary of Kratos Defense & Security Solutions Inc. of San Diego that makes remote-controlled subscale aircraft for the U.S. military, has agreed to pay the United States $2 million to resolve allegations that it violated the False Claims Act by submitting inflated costs in connection with a 2007 contract, says U.S. Attorney Benjamin Wagner. The United States alleges that, in submitting its contract proposal, Composite Engineering knowingly or recklessly included significantly overstated materials costs and labor hours, resulting in a windfall to the company."
