A reader sent this in today. It seems just like I’ve said many times here, that each instance of Boeing fraud and other alleged and prosecuted crimes is only the tip of the proverbial iceberg. -GFS
No one is overseeing the defense contractors, they are out of control.
The Miami Herald
Boeing pays $25 million to settle US probe
BofA agrees to $33M SEC fine over Merrill bonuses
Bank of America Corp. has agreed to pay a $33 million penalty to settle government charges that it misled investors about Merrill Lynch’s plans to pay bonuses to its executives, regulators said Monday.
In seeking approval to buy Merrill, Bank of America told investors that Merrill would not pay year-end bonuses without Bank of America’s consent. But the Securities and Exchange Commission said Bank of America had authorized New York-based Merrill to pay up to $5.8 billion in bonuses.
That rendered a statement Bank of America mailed to 283,000 shareholders of both companies about the Merrill deal “materially false and misleading,” the SEC said in a statement.
The Associated Press Posted August 13, 2009
WASHINGTON — Boeing Co. agreed Thursday to pay the U.S. government $25 million to settle claims the company did defective work on critical military refueling planes in Iraq and Afghanistan.
The settlement arose out of a whistle-blower lawsuit filed in Texas by two former Boeing workers who will now receive $2.6 million for drawing attention to the issue.
The Justice Department had investigated the Chicago-based aerospace giant for allegedly defective work on the Air Force fleet of KC-10 Extenders, which are used for in-flight refueling in the Iraq and Afghanistan war theaters.
The work was done while performing maintenance on the planes at the Boeing Aerospace Support Center in San Antonio, Texas.
The government investigation found Boeing overcharged the government for installing insulation blankets by padding the estimated hours of work and charging an excessive hourly rate for labor.
In announcing the settlement, Assistant Attorney General Tony West said companies that do work for the United States “must deal honestly with the government.”
Even as it agreed to fork over millions of dollars, the company still insisted it did nothing wrong.
“Boeing disagreed with the (Justice Dept.) claims that our employees improperly installed the blankets and improperly billed the Air Force for our work,” company spokesman Forrest Gossett said. He said the company decided to settle in order to “move forward” as it continues to do maintenance work on the planes.
Under terms of the settlement, Boeing will pay $18.4 million in cash and do $6.6 million worth of repairs.