Wellman Dynamics, an aluminum and magnesium castings manufacturer for the defense and aerospace industry, will pay $500,000 to resolve alleged violations of the False Claims Act (FCA) for failing to conduct contractually required testing and falsifying test results for parts used in military aircraft, the Department of Justice announced Aug. 5.
According to the settlement agreement, from January 2014 to August 2021, Wellman “failed to appropriately report tensile test failures or perform necessary re-testing to ensure castings were adequate for sale” and then “falsified casting properties for purposes of tensile testing, such that resulting test failures were falsely recorded as meeting customer specifications.”
Furthermore, according to court documents, Wellman falsified results for destructive testing of castings or would fail to conduct necessary destructive testing entirely; failed to conduct salt fog corrosion testing as required, and instead recycled previously received certificates of passing; and failed to conduct necessary intergranular attack verification of hot isostatic test parts.
These failures to conduct necessary testing or appropriately report test results caused the submission of false claims to the Department of Defense, the U.S. Navy, and/or the U.S. Army, the Justice Department stated in the settlement agreement.
“Proper testing is critical for ensuring the proper performance of the equipment that is provided to our men and women in uniform” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly falsify or fail to conduct required tests and put our military at risk.
The settlement includes the resolution of claims brought under the whistleblower provisions of the FCA by Wellman employee Bradley Keller in the case U.S. ex rel. Bradley Keller v. WDC Acquisitions, LLC d/b/a Wellman Dynamics and Trive Capital Management. Under those provisions, a private party can file a lawsuit on behalf of the United States and receive a portion of any recovery. Keller will receive $90,000 for his part in bringing the misconduct to light. 
Jaclyn Jaeger is a contributing editor at Compliance Chief 360° and a freelance business writer based in Manchester, New Hampshire.