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Project on Government Oversight
 

 

 

 

POGO Comment on Boeing Settlement

May 15, 2006 

 

On Monday, Boeing reached a tentative agreement with the U.S. Justice Department to pay a $615 million settlement because of investigations into contracting misconduct perpetrated over three years.  Boeing's settlement allows it to avoid criminal charges and any admission of wrongdoing.

"The Project On Government Oversight ( POGO ) is heartened by the financial penalty the U.S. Department of Justice is announcing today against Boeing.  Our records show that this is the largest financial penalty imposed against a defense contractor," said Jennifer Porter Gore, POGO spokeswoman.  As such, this is a strong indication that the government is taking seriously the need for strong deterrents against future contracting violations.  We hope that the government continues to take this strong stance and doesn't go back to relying on the uneven efforts defense contractors have made to police themselves."

An excerpt from POGO 's Federal Contractor Misconduct Database appears below.

Click here to listen to National Public Radio's interview with POGO 's Scott Amey about Boeing's announced $615 million settlement with the Justice Department.


 

Contractor

Case Type

Amount

Disposition, Date

Description

Court Case

Source

Unisys

Defense

$159,000,000  

Settlement, 9/6/1991

"Unisys pleaded guilty to charges that it submitted phony invoices to the Pentagon to conceal illegal efforts to get inside bid information on contracts and make political contributions to influential members of Congress."

(Civil)

Defense Contracting: Contractor Claims for Legal Costs Associated with Stockholder Lawsuits, GAO/NSIAD-95-66 (July 1995); AP 03/15/92

 

United Technologies

Defense

$150,502,931  

Settlement, 3/30/1994

"Procurement Fraud"

United States v United Technologies, Docket #89-CV-323, US DC CT ( Hartford ) (Civil)

Defense Contracting: Contractor Claims for Legal Costs Associated with Stockholder Lawsuits, GAO/NSIAD-95-66 (July 1995)

 

Northrop Grumman
--TRW (Space & Technology Group)

Defense

$111,000,000  

Settlement, 6/9/2003

"The government alleged that between the years 1990 and 1997, TRW employees engaged in five separate schemes that increased the costs the government paid the aerospace contractor."

United States v TRW, Docket #95-CV-4153, US DC CD CA (Civil)

Department of Justice Press Release 06/09/2003 ; Northrop Grumman Press Release 06/09/2003

 

TRW
--Lucas Western

Defense

$88,000,000  

Settlement, 10/2/1995

Allegedly "failed to properly test military airplane parts and knowingly shipped defective parts to the Navy, Army, and Air Force under contracts with the Department of Defense..."

United States v Lucas Aerospace, Docket #93-CV-831, US DC District of Utah (Central) (Civil)

Department of Justice (DOJ) Press Release 10/02/95 ; Court Docket

 

Northrop Grumman
--Litton (Computer Services - Woodland Hills)

Defense

$82,000,000  

Settlement, 7/14/1994

Allegedly, "the company defrauded the government of millions of dollars by shifting commercial data processing costs to hundreds of defense contract ... ."

Taxpayers Against Fraud v Litton Systems, Docket #88-CV-2276, US DC CD CA (Civil)

GAO/NSIAD-95-166; Defense Contract Litigation Reporter 8/11/1994 ; DOJ Press Release 7/14/1994

 

Boeing

Defense

$75,000,000  

Settlement, 4/29/1994

"Accused of charging the Government millions of dollars in research and development costs that it should have absorbed."

(Civil)

Defense Contracts: Contractor Claims for Legal Costs Associated with Stockholder Lawsuits GAO/NSIAD-95-166 (July 1995); The New York Times 04/30/94

 

General Electric

Defense

$69,000,000  

Pled Guilty, 7/22/1992

"... [pled] guilty to diverting some $26.5 million from the U.S. foreign military aid program used to finance General Electric's sale of F-16 jet engines and support equipment to Israel ."

United States v General Electric, Docket #90-CV-792, US DC SD OH ( Cincinnati ) (Criminal)

Taxpayers Against Fraud (TAF) 1994 Year In Review; Defense Contracting: Contractor Claims for Legal Costs Associated with Stockholder Lawsuits, GAO/NSIAD-95-66 (July 1995); Department of Justice (DOJ) Press Release 05/12/93

 

Boeing

Defense

$61,500,000  

Settlement, 8/1/2000

"Alleged that Boeing placed defective flight-critical transmission gears into CH-47D Chinook helicopters."

United States v Boeing, Docket #97-CV-410, US DC SD OH (Civil)

Department of Defense (DOD) Inspector General Press Release 08/01/00-08/15/00; Department of Justice (DOJ) Press Release 08/03/00 ; DOJ Press Release 05/01/97 ; Taxpayers Against Fraud (TAF) Quarterly Review Volume 14 April 2000 , Volume 18 July 2000 , Volume

 


Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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