Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Preci Manufacturing Inc. (Preci) has agreed to pay $150,000 to resolve allegations that it violated the False Claims Act by selling parts to the United States military that Preci failed to test, despite clear contract testing requirements meant to ensure the strength and durability of the parts.
Preci, located in Winooski, Vermont, manufactures nuts, bolts, and other fasteners, which it supplies to the federal government. The fasteners provided by Preci are used in military equipment, including aircraft, and thus require precise manufacturing protocols and careful post-production testing. The United States’ investigation uncovered evidence that Preci repeatedly flouted safety requirements, with employees directed to skip mandatory testing. The government alleges that these deceptive acts violated the False Claims Act, a civil fraud statute that prohibits the knowing submission of false claims to the government.
“Preci’s sales to the United States of parts that it chose not to test are reprehensible, with Preci appearing to have prioritized its own profits over the safety of the products it provided to the military,” said United States Attorney Nikolas P. Kerest. “Our office takes seriously allegations related to cutting corners and evading regulations and will continue to pursue companies that betray the trust of the government and the public.”
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