Defense Contractor Agrees To Pay $628,000 To Settle False Claims Act Allegations

NEWARK, N.J. - A Vermont company will pay $628,328 to resolve allegations that it sold substandard items to the United States Army, U.S. Attorney Philip Sellinger announced today.

The settlement resolves allegations that from July 13, 2018 through November 21, 2019, Live Wire, LLC made false claims in conjunction with contracts awarded to it by the United States Army. Live Wire contracted with the Army to sell electronic communications headsets and admits in the settlement that it provided non-compliant headsets that were not tested to the appropriate military specifications prior to their sale. Upon discovering that the headsets were not properly tested, Live Wire self-disclosed that information to the Government and cooperated with the investigation.

U.S. Attorney Sellinger credited special agents of the United States Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and special agents of the United States Army, Army Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Joel Kirch, for the investigation of the allegations against Live Wire.

The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney's Health Care Fraud Unit in Newark.