FOR IMMEDIATE RELEASECIV
TUESDAY, NOVEMBER 21, 2000(202) 514-2007
WWW.USDOJ.GOVTDD (202) 514-1888
SETTLEMENT REACHED WITH OHIO FIRM THAT ARMOR PLATED
MILITARY HUMMER FOUR-WHEEL DRIVE VEHICLES
WASHINGTON, D.C. - An Ohio firm has agreed to pay the United States $1.1 million to settle allegations that it violated the False Claims Act on a contract to armor Hummer four-wheel drive vehicles for the Army and Air Force, the Justice Department announced today. The government alleged that O'Gara-Hess & Eisenhardt Armoring Company had insufficient quality control of certain subcontractor parts that were placed into armored passenger compartments for the High Mobility Multipurpose Wheeled Vehicles (HMMWVs).
The Fairfield, Ohio firm produced more than 1,500 armored HMMWVs from 1996 through 1998. The United States alleged that parts supplied by subcontractors, Complete Metalworks Inc. of Cincinnat, MARTEC Inc. of Batavia, Ohio and L-T Enterprises Inc. of West Chester, Ohio were produced by non-certified welders for more than 900 HMMWV armored shells.
As part of the overall settlement of this lawsuit, Complete Metalworks will pay $35,000 and L-T Enterprises will pay $15,000. MARTEC, which filed for Chapter 11 Bankruptcy protection in September 2000, is finalizing a settlement agreement with the United States.
"Today's settlement is an example of the Justice Department's determination to ensure that work contracted for our armed forces is carried out at the highest possible standards," said Assistant Attorney General David W. Ogden of the Civil Division.
The claims originated from a qui tam or whistleblower suit under the False Claims Act filed by a former employee of the three subcontractors. Under the terms of the settlement, the former employee will receive a share of the settlement.
The settlement concludes an investigation undertaken by the U.S. Department of Defense, Defense Criminal Investigative Service's Dayton Resident Agency Office, the United States Army Criminal Investigation Command, Columbus Resident Fraud Agency, and the United States Department of Justice in Washington, D.C.