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Boeing Settles Two Sets of Fraud Allegations for $27 Million

August 13, 2009

On Monday the Boeing Company announced it will pay $2 million to settle allegations leveled by a qui tam whistleblower and joined by the Department of Justice.  The whistleblower, a Boeing mechanic, alleged that the company falsely billed the United States by inflating estimates of the hours required for various tasks associated with the upkeep of a KC-135 tanker fleet.  According to the lawsuit, Boeing’s estimates were based on false records reflecting work that was never performed, by individuals who had no involvement with the maintenance of the fleet.

Today another settlement was reported, this time for $25 million.  That case, also instituted by former employees, was based on allegations of defective work performed by Boeing of the KC-10 Extender fleet.

To report defense contracting fraud, contact Frohsin & Barger.

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