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John H. Durham, United States Attorney for the District of Connecticut, today announced that RAYTHEON TECHONLOGIES CORPORATION (“RTC”) and its subsidiary, HAMILTON SUNDSTRAND CORPORATION (“HSC”), have entered into a civil settlement agreement with the government in which they will pay $515,6235 to resolve allegations that they violated the False Claims Act.
RTC, a Massachusetts-based corporation, and HSC, its wholly owned subsidiary, are military defense contractors that sell goods and services to the U.S. and to other defense contractors.
The Buy American Act of 1933 (the “BAA”) is domestic-preference legislation that attempts to protect U.S. businesses and labor by generally restricting the acquisition and use of end products or construction materials that are not categorized as “domestic.” The government alleges that UTC and HSC sold various goods to the government pursuant to contracts containing domestic-preference requirements and, in the course of those sales, improperly certified that the goods were of domestic origin pursuant to the BAA when the goods were actually manufactured in Romania. UTC and HSC also sold various goods to a third-party supplier for sale to the government and, in the course of those sales, improperly certified to the third-party supplier that the goods were of domestic origin pursuant to the BAA when the goods were actually manufactured in Romania.
The government contends that the certifications and invoices submitted to the government and to the third-party supplier were false claims for payment pursuant to the False Claims Act. To resolve the government’s allegations, RTC and HSC have paid $515,625 for conduct occurring between 2006 and 2015.
This investigation was conducted by Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Naval Criminal Investigative Service. This matter was handled by Assistant U.S. Attorney John Larson.