Southern California Aerospace Company Settles for $1.5M Over False Claims Act Violations

An aerospace and defense electronics company based in Chatsworth, California, has agreed to pay $1.5 million to resolve allegations of violating the False Claims Act. The company, Teledyne RISI Inc., also known as Teledyne Electronic Safety Products (Teledyne ESP), faced scrutiny for supplying aircraft parts to the military that did not meet the required contract specifications.

Teledyne ESP entered into a settlement with the Justice Department to address claims that, as a subcontractor for U.S. Navy contracts, it knowingly caused false claims to be submitted to the Navy. The allegations centered on the manufacture of Digital Recovery Sequencer (DRS) units, which contained a microelectronic part that reportedly failed to conform to the specifications approved by the Navy.

The DRS units are critical components of ejection seat systems used in military aircraft. According to the allegations, Teledyne ESP sourced the non-conforming parts from a third-party broker that was neither an original equipment manufacturer nor an authorized re-seller. These DRS units, equipped with the allegedly non-conforming parts, were delivered to the Navy between November 2011 and June 2012, and were subsequently installed in military aircraft ejection seat systems.

As part of the settlement, the Department of Justice (DOJ) acknowledged that Teledyne ESP took proactive steps that warranted credit for cooperation during the government’s investigation. This included identifying witnesses and facilitating their interviews, which contributed to the resolution of the case.

Topics
California
Claims
Aerospace

An aerospace and defense electronics company based in Chatsworth, California, has agreed to pay $1.5 million to resolve allegations of violating the False Claims Act. The company, Teledyne RISI Inc., also known as Teledyne Electronic Safety Products (Teledyne ESP), faced scrutiny for supplying aircraft parts to the military that did not meet the required contract specifications.

Teledyne ESP entered into a settlement with the Justice Department to address claims that, as a subcontractor for U.S. Navy contracts, it knowingly caused false claims to be submitted to the Navy. The allegations centered on the manufacture of Digital Recovery Sequencer (DRS) units, which contained a microelectronic part that reportedly failed to conform to the specifications approved by the Navy.

The DRS units are critical components of ejection seat systems used in military aircraft. According to the allegations, Teledyne ESP sourced the non-conforming parts from a third-party broker that was neither an original equipment manufacturer nor an authorized re-seller. These DRS units, equipped with the allegedly non-conforming parts, were delivered to the Navy between November 2011 and June 2012, and were subsequently installed in military aircraft ejection seat systems.

As part of the settlement, the Department of Justice (DOJ) acknowledged that Teledyne ESP took proactive steps that warranted credit for cooperation during the government’s investigation. This included identifying witnesses and facilitating their interviews, which contributed to the resolution of the case.

Topics
California
Claims
Aerospace