By MELINDA WILLIAMS
Heytex USA Inc. of Pulaski has agreed to pay a $3 million settlement to resolve allegations it knowingly violated the False Claims Act, according to U.S. Attorney Chris Kavanaugh of Virginia’s Western District. However, he notes, claims resolved by the settlement are merely accusations and not a determination of liability.
The settlement stems from fabrics Heytex sold to the United States military between Jan. 1, 2013, and Dec. 31, 2018. Kavanaugh contends Heytex officials were aware the fabrics did not meet the military’s specifications, but the company continued to claim they did.
Heytex, a worldwide manufacturer of various technical textiles and materials, purchased the former BondCote Corp. in 2015. The U.S. branch of Heytex is located and headquartered on Burgis Avenue in Pulaski.
A federal investigation into Heytex’s alleged false claim practices was initiated by a whistleblower, according to Kavanaugh. He contends the whistleblower, a Heytex employee, was ignored upon presenting falsified test results to former company management.
The whistleblower told federal officials Heytex, on more than 100 occasions, “falsely certified that its military-grade fabrics met all requisite performance specifications set by the military when, in fact, the fabrics failed those tests.”
In addition to the monetary settlement, Heytex also entered into an agreement with Defense Logistics Agency (DLA) to ensure the company complies with...
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