Boeing Will Pay $25 Million to Resolve Allegations that It Defrauded The DoD in a Contract to Provide Drones, Whistleblower Awarded $4.6 Million

Boeing Will Pay $25 Million to Resolve Allegations that It Defrauded The DoD in a Contract to Provide Drones, Whistleblower Awarded $4.6 Million

Boeing has agreed to pay $25 million to settle a procurement fraud lawsuit filed by a former employee.

The aircraft company’s subsidiary, Insitu, is a manufacturer of surveillance drones for the Department of Defense. According to allegations raised in the whistleblower lawsuit, the company systematically charged the government for new parts when it planned to use recycled parts to manufacture drones for the U.S. Special Operations Command and the Navy.

The fraud lawsuit against Boeing was filed by a man who dedicated nearly 40 years of his life to the company. For his role in the investigation, the insider, D R O’Hara, will receive a $4.6 million whistleblower award.

The DOJ said in a statement that between 2009 and 2017, the defendant “knowingly submitted materially false cost and pricing data” to the government, inflating prices and overbilling the DoD for Insitu surveillance drones....

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