Eideard

U.S. government sues Boeing over fraud

with one comment

The federal government has sued Boeing for allegedly inflating the prices of B-1 bomber equipment sold to the Air Force. The lawsuit alleges the military paid $7.5 million more than it should have because Boeing did not tell the Air Force during contract negotiations that it found a source for cheaper parts to build decoy systems that protect bombers from missiles…

It’s a significant amount and, of course, it’s all taxpayer money,” Assistant U.S. Attorney Lisa Palombo told The Associated Press.

“We make it a priority to collect all taxpayer funds that are obtained through fraud. We don’t make exceptions for anyone, individuals or large companies…”

The lawsuit, filed in Los Angeles federal court, alleges Boeing told the Air Force during negotiations in 1990 that it would manufacture parts for decoy systems at its own facility in Palmdale. Boeing allegedly did not inform the Air Force that it planned to close the facility and buy parts from subcontractors at a lower price.

We paid Boeing $36 million for 57 of these decoy kits. Under the False Claims Act, the government can recover up to three times the amount it overpaid, plus penalties.

I hope they get every penny.

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Written by Ed Campbell

September 3, 2008 at 6:00 pm

Posted in Business, Crime

Tagged with , , , ,

One Response

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  1. It surely is a beautiful aircraft, though.

    moss

    September 3, 2008 at 6:28 pm


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