May 30, 1995  SMTEK Inc.

A California aerospace company, SMTEK Inc., has agreed to pay $200,000 to settle claims asserted in a qui tam action filed by David Coffman, a former employee of the company.

The allegations of the case were that SMTEK has obtained a federal contract by falsely stating to the government that it could test space station components, when in fact it did not have that capability. SMTEK received a $10 Million Dollar subcontract from the National Aeronautics and Space Administration by falsely stating the manner in which it could do the tests, which included testing on computer circuit boards used on the space station. After getting the contract, SMTEK said it would have to incur additional costs to develop the capability it claimed it already possessed. The government absorbed the costs.

As part of the settlement Mr. Coffman will receive $35,000 for having filed the qui tam case.

See U.S. Dept of Justice Press Release 5/30/95

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