United States Joins Suit Against Navistar Defense LLC Alleging False Claims Under Marine Corps Contr
https://www.justice.gov/usao-dc/pr/united-states-joins-suit-against-navistar-defense-llc-alleging-false-claims-under-marineDepartment of Justice
U.S. Attorneys Office
District of Columbia
FOR IMMEDIATE RELEASE
Wednesday, December 4, 2019
United States Joins Suit Against Navistar Defense LLC Alleging False Claims Under Marine Corps Contract
WASHINGTON The United States has intervened in a multimillion dollar whistleblower suit filed in the United States District Court for the District of Columbia against Navistar Defense, LLC. Navistar Defense manufactured large and armored vehicles for the United States military and is a subsidiary of Navistar International, LLC, headquartered in Melrose Park, Illinois. The suit alleges that Navistar Defense violated the False Claims Act (FCA) by submitting fraudulent invoices to support inflated prices for commercial parts on the Mine Resistant Ambush Protected (MRAP) vehicle.
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In 2007, the United States Marine Corps awarded Navistar Defense a contract to build several hundred MRAP vehicles to replace the Humvee, which proved to be vulnerable to roadside bombs. Navistar Defense ultimately provided nearly 4,000 MRAPs under the contract. In 2009, as the focus of the war effort transitioned from the paved roads and flat terrain of the Iraqi deserts to Afghanistans rocky terrain, the Marine Corps sought to upgrade its MRAP vehicles with a modified (?) Independent Suspension System (ISS). During the course of negotiations for the ISS, the Marine Corps asked Navistar Defense to provide evidence of prior commercial sales of the various parts that made up the ISS to ensure that the prices paid were fair and reasonable. The government alleges that Navistar Defense knowingly submitted forged documents of prior, comparable commercial sales to conceal the inflated prices it was charging the Marine Corps. In reality, those sales never occurred.
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flotsam
(3,268 posts)Navistar International Corporation (formerly International Harvester Company) is an American holding company, that owns the manufacturer of International brand commercial trucks, IC Bus school and commercial buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van, and SUV markets. The company is also a provider of truck and diesel engine parts and service.
WIKI
TexasTowelie
(116,501 posts)The details of a whistleblower lawsuit against defense contractor Navistar have been unsealed, accusing the company of bilking nearly $1.3 billion from the government.
In 2013, a former Navistar Defense employee accused the company of fraudulent and inflated pricing for the mine-resistant, ambush-protected vehicles it sold to the U.S. Marine Corps.
The MRAPs as they're commonly called were built via several contracts from 2007-2012. About 4,000 were built, with their finishing done at Navistar's plant in West Point.
The whistleblower, Duquoin Burgess, filed suit in 2013, claiming the company violated the False Claims Act by forging invoices, catalog prices and other information used in negotiations to sell the MRAPs.
More at https://www.djournal.com/news/business/navistar-being-sued-for-b-in-fraudulent-charges-for-armored/article_ba0a31f2-d555-5079-8c49-2e1019aad9b5.html