The U.S. Department of Justice announced Monday that Teledyne RISI Inc., also known as Teledyne Electronic Safety Products, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by supplying non-conforming aircraft parts to the U.S. military.
According to the Justice Department, Teledyne ESP, an aerospace and defense electronics company based in Chatsworth, California, was accused of knowingly causing false claims to be submitted to the U.S. Navy while acting as a subcontractor on Navy contracts.
The allegations center on the company’s manufacture of Digital Recovery Sequencer units, a component of ejection seat systems used in various military aircraft.
Federal officials allege the DRS units contained a microelectronic part that did not meet Navy-approved contract specifications.
The non-conforming parts were allegedly obtained from a third-party broker that was neither the original equipment manufacturer nor an authorized reseller. The affected units were delivered to the Navy between November 2011 and June 2012 and installed in military aircraft.
“Our military aviators rely on defense supply chains to provide them with equipment that they can depend on, even in the most difficult conditions,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will continue to hold accountable those who supply equipment to the U.S. military that does not conform to the contract specifications.”
U.S. Attorney Bryan Stirling for the District of South Carolina emphasized the safety implications of the case, stating, “Our military should not only expect the correct, conforming parts for the equipment they need to serve and defend our country, they deserve that proper equipment.”
Investigators from multiple federal agencies participated in the case, including the Defense Criminal Investigative Service and the Air Force Office of Special Investigations. Officials from both agencies underscored the importance of maintaining integrity within the Department of Defense supply chain.
As part of the settlement, the United States acknowledged that Teledyne ESP took steps to cooperate with the investigation, including identifying witnesses, facilitating interviews and providing updates through the Government-Industry Data Exchange Program.
The company received cooperation credit under Department of Justice guidelines.
The Justice Department noted that the settlement resolves allegations only, and there has been no determination of liability.
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