Boeing Settles False Claim Over Improper Billing

PHILADELPHIA – The Boeing Company has agreed to pay the United States $4,392,779.74 and to undertake several programmatic changes, resolving claims that Boeing improperly billed the Department of Defense for work at Boeing’s facility in Ridley Park, Pennsylvania. The settlement was announced today by United States Attorney Zane David Memeger, Direct James K. Podolak of the Army Criminal Investigation Division’s Major Procurement Fraud Unit (MPFU), and Special Agent-in-Charge Edward T. Bradley with the Defense Criminal Investigative Service (DCIS).

Beginning in approximately 2003, the United States Department of Defense awarded Boeing contracts to produce and modify Chinook helicopters as part of the Army’s effort to modernize its fleet of heavy lift helicopters. More than 100 new Chinooks were ordered, and Boeing also agreed to “remanufacture” several hundred older Chinook helicopters by overhauling their airframes to accommodate upgrades of the helicopter’s avionics and engines.  The Ridley Park plant is the principal site where this work is performed.

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