SD Company To Pay $5.6M To Settle False Claims Act Allegations

SAN DIEGO, CA — A San Diego company that manufactures and supplies tungsten products used in U.S. military applications and munitions has agreed to pay more than $5.6 million to resolve allegations that it falsely claimed its product materials were sourced and manufactured in the United States, the U.S. Attorney's Office said Thursday.

Tungsten Heavy Powder, Inc. allegedly submitted false certifications regarding the sourcing and manufacturing of defense articles procured by the government of Israel and financed with U.S. grant funds through the Foreign Military Financing program.

The U.S. Attorney's Office said that in order to promote American manufacturing, these grant funds are only available when the materials are sourced and manufactured in the U.S. by domestic companies.

The company allegedly certified that its tungsten was sourced in the U.S. when it was actually sourced in China. It also allegedly certified that its manufacturing occurred in the U.S. when the company actually contracted with a Mexican maquiladora, according to the U.S. Attorney's Office.

The allegations were originally brought in a lawsuit filed by a former employee and Global Tungsten & Powders Corporation, which will receive 17% of the settlement proceeds, the U.S. Attorney's Office said.

— City News Service