Bradken, Inc. Makes Public Statement Regarding Its Testing Fraud

Tuesday, 04 August 2020 00:00 Nick Sanders

It’s long been a tenet of this site that the reason to discuss the compliance failures of various government contractors is to learn what went wrong so as to aid in preventing similar problems at your company. There is a maxim that’s been attributed to many authors (most commonly Otto von Bismarck): “Only a fool learns from his own mistakes. The wise man learns from the mistakes of others.” An old Forbes article stated it this way (without attribution)—"In Russian there is an expression: The wise man learns from someone else’s mistakes, the smart man learns from his own, and the stupid one never learns.

We post this article so that others can learn from the mistakes of Bradken, Inc.

We wrote about Bradken in a very recent article, in which we discussed the company’s resolution of a 30 year-long fraud (allegedly) perpetrated by a senior quality testing employee. (As noted in the original article, we use the term “allegedly” because, while the company has apparently resolved the civil and criminal complaints it was facing, as far as we know the (now former) employee still faces charges—and people are innocent until proven guilty in a court of law.)

Before you read any further, we suggest you follow the link in the paragraph above and familiarize youself with the story of the fraud and how Bradken resolved its legal woes. In that article, you’ll find additional links to Bradken’s civil False Claims Act settlement agreement and its criminal fraud deferred prosecution agreement. Those latter two documents are well worth reading.

Anyway, Bradken apparently resolved its legal problems; a part of the resolution was to publish a public statement regarding what happened and what Bradken learned from its problems, so that others could learn from Bradken’s mistakes. Here’s a link to that public statement. We strongly recommend you read it in full and even consider saving it for future reference.

Here are some quotes from Bradken’s public statement that caught our eye. We have italicized certain words for emphasis and removed some words for length (as indicated by use of ellipses), but otherwise have changed nothing.

This is one of those situations where everybody in the compliance profession can learn something from the mistakes of others. This could have happened to any company who chose not to invest in internal control systems because risk analysis failed to properly evaluate risk, probability, and consequence. We cannot let our companies “pooh-pooh” compliance risks and therefore put themselves into a similar situation.

Only fools will fail to learn from Bradken’s mistakes.

Don’t let your company be foolish.