Date: Oct 27, 2014 Source: bizjournals (
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A Boulder company, First RF Corp., has agreed to pay $10 million to settle allegations that it submitted inflated claims for antennas the company sold to the U.S. Army.
The equipment was used in electronic warfare systems combating so-called Improvised Explosive Devices (IEDs) in Iraq and Afghanistan. Government investigators alleged that the company inflated the cost of making the devices, resulting in the Army paying a higher price.
First R.F. Corp will reportedly pay $10 million to settle allegations from the U.S. Army that it inflated the cost of antennas it created.
First R.F. Corp will reportedly pay $10 million to settle allegations from the U.S. Army…
"When defense contractors supply our armed forces with equipment, those contractors must be absolutely truthful in their price negotiations," said U.S. Attorney John Walsh for the District of Colorado. "It is no excuse for dishonesty that the military equipment was urgently needed. Defense contractors that fail to act with integrity in such negotiations should know that they will face consequences."
The company was investigated under the Federal False Claims Act but no charges had been filed. The settlement resolves the government's investigation.
"The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Defense Department's procurement process," said Special Agent-in-Charge Janice M. Flores of the DCIS Southwest Field Office located in Arlington, Texas. "Contractors such as FRF are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government and this settlement demonstrates that companies will be held accountable for their actions."
First RF Corp. is privately held. According to a National Academies Press entry on the company, First RF was founded by Farzin Lalezari and Theresa Boone in 2003. Ownership is distributed between Lalezari and his wife, Shirley, and Boone.
Boone and Lalezari formerly worked for Ball Aerospace.
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