A San Diego company that manufactures and supplies products used by the U.S. military agreed to pay more than $5.64 million to resolve allegations of false claims, authorities said Thursday.
The U.S. Attorney’s Office accused the company, Tungsten Heavy Powder, Inc., which manufactures and supplies tungsten products used in military applications and munitions, of claiming its raw materials were sourced and manufactured domestically.
Tungsten Heavy Powder allegedly submitted false certifications regarding the sourcing and manufacturing of defense articles procured by the Israeli government.
U.S. grant funds supported the procurement of the items, through the Foreign Military Financing program, part of the U.S. Defense Security Cooperation Agreement Agency.
Prosecutors said that in order to promote American manufacturing, the grant funds are only available when the materials are sourced and produced in the U.S. by U.S.-owned firms.
The company allegedly certified that its tungsten was sourced domestically – when it was actually obtained from China – in seven Israeli purchase orders.
Officials also allegedly certified that the manufacturing occurred in the U.S. when the company actually contracted with a Mexican maquiladora for the work, prosecutors said.
The allegations were originally brought in a lawsuit filed by a former employee and Global Tungsten & Powders Corporation. They will receive 17% of the settlement proceeds as whistleblowers, the U.S. Attorney’s Office said.