The Winooski-based Preci Manufacturing will pay $150,000 in a settlement for failing to test parts it sold to the United States military.
In the agreement, announced last week by the Vermont U.S. Attorney’s Office, the bolt, nut and fastener manufacturer admitted that it knowingly sold fasteners without performing the required testing for durability and strength from 2016 to 2019. This occurred despite explicit wording in its contract with the military, attesting that all the parts would be tested, according to the settlement.
“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,” Nikolas P. Kerest, the U.S. attorney for Vermont, said in a press release.
Though the company admitted in the settlement that it had failed to complete the required testing, it disputed the government’s claim that this constituted a violation of the False Claims Act, which prohibits knowingly submitting false information to the government.
The matter was collaboratively investigated by the Vermont U.S. Attorney’s Office, the Department of Defense and the U.S. Army Criminal Investigation Division.
“Resolutions such as this one show our resolve in bringing to justice those who would seek to defraud the U.S. government and put the safety of our Soldiers at risk,” said Michael D. Connor, supervisory special agent for the Army division, in the press release.
