Illinois Precision Machining Firm Settles for $421K Over Alleged False Claims Act Breaches
Swiss Automation Inc. has reached a settlement of $421,234 to address allegations of violations under the False Claims Act. These violations stem from the company’s failure to implement adequate cybersecurity measures for certain drawings of parts that it machined and supplied to Department of Defense (DoD) prime contractors.
Based in Illinois, Swiss Automation specializes in precision machining, supplying alloy and metal parts to both commercial and government clients, including DoD prime contractors and subcontractors. The settlement resolves claims that Swiss Automation was responsible for submitting false claims due to its inadequate cybersecurity protections for sensitive drawings related to its products.
According to a press release from the U.S. Department of Justice, Swiss Automation was aware that the requirement for robust cybersecurity measures extended beyond just DoD prime contractors; it also applied to subcontractors and suppliers. Since 2017, the obligation to implement security controls outlined in the National Institute of Standards and Technology Special Publication 800-171 (NIST SP 800-171) has been a requirement for DoD contracts, subcontracts, and similar agreements. This requirement will continue under the recently finalized Cybersecurity Maturity Model Certification (CMMC) program.
“As cyber threats continue to evolve, suppliers to defense contractors must be vigilant and take the steps required to protect sensitive government information from bad actors,” stated Assistant Attorney General Brett A. Shumate from the Justice Department’s Civil Division. “We will continue our efforts to hold defense contractors, subcontractors, and suppliers accountable when they fail to honor their DoD cybersecurity commitments.”
The settlement stems from a lawsuit initiated under the whistleblower provisions of the False Claims Act. This law allows private individuals to sue on behalf of the government when they believe a defendant has submitted false claims for government funds, and they can receive a portion of any recovery. In this case, the whistleblower, Jaime Gomez, a former quality-control manager at Swiss Automation, will receive $65,291 as his share of the settlement. The qui tam case is officially titled United States ex rel. Gomez v. Swiss Automation Inc., No. 1:22-cv-4328 (N.D. Ill.).
It is important to note that the claims resolved by the United States in this settlement are allegations only, and there has been no determination of liability.
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Swiss Automation Inc. has reached a settlement of $421,234 to address allegations of violations under the False Claims Act. These violations stem from the company’s failure to implement adequate cybersecurity measures for certain drawings of parts that it machined and supplied to Department of Defense (DoD) prime contractors.
Based in Illinois, Swiss Automation specializes in precision machining, supplying alloy and metal parts to both commercial and government clients, including DoD prime contractors and subcontractors. The settlement resolves claims that Swiss Automation was responsible for submitting false claims due to its inadequate cybersecurity protections for sensitive drawings related to its products.
According to a press release from the U.S. Department of Justice, Swiss Automation was aware that the requirement for robust cybersecurity measures extended beyond just DoD prime contractors; it also applied to subcontractors and suppliers. Since 2017, the obligation to implement security controls outlined in the National Institute of Standards and Technology Special Publication 800-171 (NIST SP 800-171) has been a requirement for DoD contracts, subcontracts, and similar agreements. This requirement will continue under the recently finalized Cybersecurity Maturity Model Certification (CMMC) program.
“As cyber threats continue to evolve, suppliers to defense contractors must be vigilant and take the steps required to protect sensitive government information from bad actors,” stated Assistant Attorney General Brett A. Shumate from the Justice Department’s Civil Division. “We will continue our efforts to hold defense contractors, subcontractors, and suppliers accountable when they fail to honor their DoD cybersecurity commitments.”
The settlement stems from a lawsuit initiated under the whistleblower provisions of the False Claims Act. This law allows private individuals to sue on behalf of the government when they believe a defendant has submitted false claims for government funds, and they can receive a portion of any recovery. In this case, the whistleblower, Jaime Gomez, a former quality-control manager at Swiss Automation, will receive $65,291 as his share of the settlement. The qui tam case is officially titled United States ex rel. Gomez v. Swiss Automation Inc., No. 1:22-cv-4328 (N.D. Ill.).
It is important to note that the claims resolved by the United States in this settlement are allegations only, and there has been no determination of liability.
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