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DOJ reaches $3 million deal with ArmorSource over False Claims Act violation allegations

By Mark Iandolo | Mar 9, 2016

BEAUMONT, Texas (Legal Newsline) – The Department of Justice has reached a deal with ArmorSource LLC that will have the company pay $3 million due to allegations of False Claims Act violations.

The Army contracted ArmorSource in 2006 to manufacture Advanced Combat Helmets for use by soldiers during combat. These helmets are made from Kevlar and are designed to protect against ballistics. The Justice Department alleges that between 2006 and 2009, ArmorSource delivered helmets to the Army that did not conform to the contract requirements or meet contract performance standards.

“The U.S. government relies on contractors to manufacture equipment that is critical to the safety of our men and women in uniform, and equipment that fails to meet performance standards not only cheats taxpayers, but can put lives at risk,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “Today’s settlement demonstrates our commitment to ensuring our military receives products that meet its requirements and for which it has paid.”

The lawsuit was filed under the whistle-blower provisions of the False Claims Act. Employees of the subcontractor ArmorSource used, Melessa Ponzio and Sharon Clubb, will receive $450,000 for their efforts.

“Today’s settlement in this important case is a reminder to all government contractors that they must deliver on their promises, especially when the safety and security of our troops is on the line,” Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General’s Dallas Field Office said.

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