Prysmian Cables Settles Allegations of Falsified Test Results and Failure to Test Cable Used in Military Vehicles
Prysmian Cables and Systems USA LLC (Prysmian), located in Abbeville, South Carolina, has agreed to pay $920,000 to settle allegations that it violated the False Claims Act by knowingly falsifying test results and failing to conduct required testing on military cable, known as M13486 cable, that was used in vehicles manufactured for use by the military. The alleged misconduct took place from approximately 2005 to 2021 at a facility in Paragould, Arkansas. Prysmian acquired the Paragould facility in 2018. The settlement resolves allegations disclosed by Prysmian under the Federal Acquisition Regulation (FAR)’s mandatory disclosure rule that Prysmian and prior owners of the Paragould facility had failed to conduct several required tests and, instead, had prepared and submitted to the United States falsified test results and false certifications of compliance.
In early 2021, a Defense Logistics Agency employee noticed discrepancies between the cable manufacturing and testing dates on test data submitted by Prysmian and refused to accept the test data, which triggered an internal investigation at Prysmian. As a result of its investigation, Prysmian terminated four employees involved in the alleged misconduct, including its quality manager, quality systems coordinator, quality engineer and product development supervisor. Prysmian also repurchased all suspect cable that had been shipped to its distributor and made a mandatory disclosure under the FAR. Prysmian cooperated with the United States’ subsequent investigation.
“Companies who do business with the United States must comply with their contractual commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable government contractors who knowingly fail to perform required services or misrepresent their performance of such services, including mandatory testing requirements.”
“The manufacturing of defective products, including ones intended for use in military vehicles, creates a significant risk to America’s warfighters,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southwest Field Office. “DCIS remains committed to working with our law enforcement partners and the Justice Department to hold accountable those who commit fraudulent activity that impacts the Department of Defense.”
DCIS and the Army Criminal Investigation Division investigated the case.
Senior Trial Counsel Alicia J. Bentley of the Civil Division handled the matter.
The claims against Prysmian resolved by the settlement are allegations only and there has been no determination of liability.
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Source: Justice.gov
