Georgia companies, Southeastern Equipment Co., Inc. and SECO Parts and Equipment Co., along with owners B. Roy Smith and Byron M. Morris, agreed to pay $900,000 to resolve whistleblower allegations that SECO violated the Buy American Act by providing the U.S. Army with unapproved substitute parts manufactured in a non-qualifying country.
The Buy American Act, passed by Congress in 1933, requires the United States government to give preference to products made in the U.S. when making purchases.
“Defense contractors have an obligation to provide the government what they say they will,” said Acting U.S. Attorney David Estes. “We will continue to vigorously pursue contractors that do not honor their word and follow the law when doing business with our armed services.”
Allegations against SECO originated as part of the federal lawsuit United States ex rel. Royal v. Southeastern Equipment Company, Inc. et al., filed under whistleblower provisions of the False Claims Act.
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Any private citizen with knowledge of false claims can file a lawsuit on behalf of the government under the False Claims Act.
The case was then investigated through the collaborative efforts of the U.S. Army Criminal Investigation Command and Defense Criminal Investigative Service.
“This settlement makes it clear to those who provide the government with substitute parts that they will be held accountable for violating their commitments,” stated Special Agent in Charge Cynthia A. Bruce, of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service. “DCIS and our investigative partners work to ensure integrity in the acquisition process and readiness for our military.”
This settlement resolved the case without the determination of liability.
Anna Porzio is a researcher and editorial assistant. Reach her at anna@theaugustapress.com.
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