Boeing Pays $23 Million for Labor Charges Fraud
10th October 2014
The Boeing Company has paid the United States $23 million to settle whistleblower allegations of fraudulent billing under maintenance contracts for the C-17 “Globemaster” aircraft at Boeing Aerospace Support Center (BASC) during the period of 2003-2007.The settlement resolves allegations originally brought in a lawsuit by present and former Boeing employees in federal court in San Antonio under the False Claims Act. The whistleblowers alleged that Boeing knowingly billed the government for labor hours charged simultaneously to more than one job, for hours charged to jobs after they were completed, for hours charged to the wrong jobs, and for hours charged to aircraft maintenance jobs when the time actually was spent on other, non-chargeable activities. The whistleblowers will receive $3.91 million as their reward for bringing the False Claims Act case and assisting the government in the investigation and resolution of the case.