December 19, 2017

UTC settles $1M false claims case involving Army helicopters

Farmington-based conglomerate United Technologies Corp. has agreed to pay more than $1 million to resolve false claims violations involving a company it previously indirectly owned, according to the U.S. Attorneys office for the District of Connecticut.

The case involves Goodrich Pump and Engine Controls Systems, a company UTC indirectly owned from July 2012 through March 2013, and Goodrich's handling of U.S. Army contracts, the U.S. Attorneys office said.

As alleged in the settlement agreement, Rolls-Royce was a prime contractor to the U.S. Army, and Goodrich Pump and Engine Controls Systems was a subcontractor to Rolls Royce.

From 2005 to 2012, Goodrich purchased, shipped and caused counterfeit microprocessors to be integrated into engine control unit assemblies, which were then incorporated into the M-250 series engine for the U.S. Army, ultimately for Army helicopters, authorities said.

During those years, Goodrich provided the government with numerous false certifications as to the authenticity of the assemblies, and made 72 false certifications between 2011 and 2012, authorities said.

"Federal contractors must abide by the certification requirements set forth in government contracts so that taxpayer dollars are not wasted, and our national security is not threatened," said U.S. Attorney Durham. "Vulnerabilities caused by counterfeit parts will not be tolerated." The Defense Criminal Investigative Service and U.S. Department of Transportation Office of Inspector General investigated the case, and UTC cooperated with that investigation, he said.

UTC sold West Hartford-based Goodrich Pump & Engine Control Systems in 2013 to Pennsylvania aeroparts maker Triumph Group Inc. The West Hartford unit employed 530 at its Flatbush Avenue location at the time.

In a written comment, UTC said:

"We are pleased that the matter is resolved without any admission of liability. As the government acknowledged in settling this matter, no UTC employees were involved in the conduct at issue and UTC never exercised control or management over the operations of Goodrich Pump and Engine Controls Systems (GPECS)."

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