Boeing Pays US Gov't $18Mln to Settle False Claims Charge - Justice Dept

The Boeing Company has paid the United States $18 million to settle allegations that it submitted false claims for labor charges on maintenance contracts with the US Air Force, the US Department of Justice said in a press release.

WASHINGTON, (Sputnik) — "Defense contractors are required to obey the rules when billing for work performed on government contracts," Principal Deputy Assistant Attorney General Benjamin Mizer stated on Wednesday.

The US government alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Long Beach Depot Center in California.

"Today’s settlement demonstrates that the Justice Department will ensure that government contractors meet their obligations and charge the government appropriately," Mizer noted.

Boeing Pays $18 Million to Settle False Claims Act Allegations http://t.co/Sk6NGwyOl1

— Justice Department (@TheJusticeDept) October 14, 2015

The C-17 Globemaster aircraft, which is both manufactured and maintained by Boeing, is one of the US military’s major systems for transporting troops and cargo throughout the world.

The US government alleged that Boeing knowingly charged the United States for time its mechanics spent on extended breaks and lunch hours, and not on maintenance and repair work properly chargeable to the contracts, according to the release.

The allegations, the Justice Department explained, were originally brought by former Boeing employee James Thomas Webb under the qui tam, or whistleblower provisions of the False Claims Act.

The act permits private individuals to sue on behalf of the government those who falsely claim federal funds, and to share in the recovery. Webb’s share of the settlement has not yet been determined, the Justice Department noted.