On August 13, 2009 the Department of Justice (DOJ) announced a $15 million settlement with Dynamics Research Corporation (DRC) of Andover, MA to resolve allegations that two former vice presidents "steered Air Force contracts for computer equipment and services to companies owned by themselves, [one executive's] wife, and others, in exchange for kickbacks and inflated contract prices that produced windfall profits for the two DRC executives. In one of the schemes, [the executives] allegedly substituted inexpensive memory modules for those required by the contract, causing the Air Force to overpay for the nonconforming modules." The announcement states that the U.S. filed a civil suit against DRC, "seeking damages and penalties under the Anti-Kickback Act, the False Claims Act, and for breach of contract." In addition, the announcement notes that in related criminal proceedings "in 2001, [the executives] pleaded guilty to conspiring to defraud the government. Both received prison sentences and were ordered to pay restitution."
See the DOJ announcement here.
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