Aerospace Firm to Pay $1.5M to Resolve False Claims Act Allegations

An aerospace and defense electronics company based in Chatsworth, California, agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by supplying aircraft parts to the military that did not meet contract specifications.

Teledyne RISI Inc., also known as Teledyne Electronic Safety Products (Teledyne ESP), entered the settlement with the Justice Department to resolve allegations that Teledyne ESP, as a subcontractor for U.S. Navy contracts, knowingly caused false claims to be submitted to the U.S. Navy.

The allegations involved the company’s manufacture of Digital Recovery Sequencer (DRS) units containing a microelectronic part that reportedly did not conform with the specifications approved by the Navy. DRS units were a component of ejection seat systems used military aircraft. Teledyne ESP allegedly obtained the non-conforming parts from a third-party broker that was not an original equipment manufacturer or an authorized re-seller. The DRS units with the alleged non-conforming part were delivered to the Navy between November 2011 and June 2012 and installed as part of ejection seat systems in military aircraft.

In connection with the settlement, the DOJ acknowledged that Teledyne ESP took certain steps entitling them to credit for cooperation with the government’s investigation, including identifying witnesses and facilitating their interviews.