United Technologies Pays More Than $1 Million to Resolve False Claims Violations

United Technologies Corporation (UTC) paid more than $1 million to resolve federal violations involving Goodrich Pump and Engine Controls Systems (GPECS). 

UTC indirectly owned GPECS between July 2012 and March 2013. 

GPECS was a subcontractor to Rolls-Royce, a prime contractor for the U.S. Army, according to the settlement agreement.

The settlement says that GPECS purchased, shipped and caused counterfeit microprocessors to be integrated into engine control units installed into U.S. Army helicopters from 2005 to 2012.

"GPECS sold its Full Authority Digital Engine Control Units, which includes the Engine Control Unit (FADEC/ECU), to Rolls-Royce Corporation for installation into its M-250 series engines. The M-250 series engines were then sent to the U.S. Army for installation into U.S. Army helicopters, specifically the OH-58 Kiowa Warrior aircraft and A/MH-6M Mission Enhanced Little Bird (MELB). From 2005 to 2012, GPECS purchased, shipped and caused counterfeit microprocessors to be integrated into FADEC/ECU assemblies, which were then incorporated into the M-250 series engine, ultimately for the Kiowa Warrior aircraft and MELB," the U.S. attorney's office said in a statement. 

It further alleged that GPECS provided the government with numerous false authenticity certifications of the FADEC/ECU assembly between 2005 and 2012. According to the settlement, 172 false certifications occurred from 2011 to 2012 as one example. 

"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 John Durham. "Vulnerabilities caused by counterfeit parts will not be tolerated. We thank the Defense Criminal Investigative Service and U.S. Department of Transportation Office of Inspector General for thoroughly investigating this matter, and UTC for cooperating with the government’s investigation."

On Tuesday, entered into a civil settlement agreement with the federal government and paid $1,060,000 to resolve the False Claims Act violation.

The company provided a statement on Tuesday afternoon:

“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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