EAST ST. LOUIS – Former AAR Corporation employee Christopher Harvey will receive $2,162,160 for exposing the company’s failure to meet safety standards in military contracts.
A complaint he filed in U.S. district court resulted in settlement on July 6, with the government receiving $8,925,840.
U.S. attorney Steven Weinhoeft stated in a press release that, “Whenever a military contractor cuts corners, it presents not only a possible fraud against taxpayers but also a potential safety hazard to our service members.”
Harvey earned his share of the settlement under federal law that provides cash incentives for those who report false claims.
Anand Swaminathan of Chicago sued for Harvey in 2015, claiming AAR and its AAR Airlift Group submitted false claims and fired him for trying to stop it.
Swaminathan wrote that AAR purchased Aviation Worldwide Services in 2010.
According to the complaint, a subsidiary of Aviation Worldwide transported personnel and cargo in support of Defense and State departments.
AAR assumed the subsidiary’s contracts, which the Transportation Command at Scott Air Force Base administered.
An internal review was alleged to have found the subsidiary failed to conduct timely inspections and replace parts with limited life.
AAR then halted internal review and concealed serious issues from Defense and from Federal Aviation Administration, according to the complaint.
“As a result, since 2010, AAR has knowingly operated aircraft that suffer from multiple serious safety and maintenance failures,” Swaminathan wrote.
“AAR repeatedly represented to Department of Defense personnel that aircraft were mission ready when AAR knew they were not.
“AAR managers knew that if AAR disclosed the maintenance problems, or failure to track life limited parts, that Department of Defense could have exercised its right to cancel contracts or reduce payments under its contracts.”
Harvey identified issues to his managers and raised concerns with two vice presidents and chief executive Randy Martinez. In 2013, Harvey submitted a complaint to Federal Aviation Administration in Washington, according to the complaint.
Harvey, who worked in Melbourne, Fla., also complained to the aviation administration’s district office in Orlando.
AAR Airlift terminated Harvey in 2014.
District Judge Nancy Rosenstengel kept the case under seal while Weinhoeft’s crew and civil fraud lawyers of the Department of Justice investigated.
This July 1, assistant attorney general Brian Boynton notified Rosenstengel that the U.S. would partially intervene for settlement purposes.
Boynton wrote that the U.S. would intervene regarding claims for services that weren’t performed on nine specific aircraft that AAR Airlift certified as mission capable.
He wrote that the U.S. declined to intervene as to all other allegations.
On July 6, Rosenstengel directed the court clerk to unseal the complaint.
She wrote that all other papers previously on file would remain under seal.
On that date, Boynton and Harvey stipulated that they would dismiss the action.
Boynton wrote that the U.S. received full payment.
He wrote that Harvey dismissed his claims with prejudice.
Swaminathan signed the stipulation for Harvey, along with Colette Matzzie and Avi Kumin of Washington.
Weinhoeft’s press release stated that his assistants Nathan Stump and Laura Barke investigated the case.
He also gave credit to Department of Justice trial attorney Elspeth England and assistant U.S. attorney Randy Harwell of the Middle District of Florida.