Wellman Dynamics has agreed to pay $500,000 to resolve allegations that the company violated the False Claims Act by failing to conduct required testing and falsifying test results for parts used in military aircraft.
The Creston, Iowa-based company makes large metal castings that are sold to prime defense contractors such as Bell Helicopter, Textron, Sikorsky Aircraft and Boeing. The parts are used on everything from the AH-64 Apache and V22 Osprey to the UH-60 Black Hawk.
From 2014 and 2021, the DOJ says Wellman failed to conduct required metallurgic and other tests on the castings, including tensile strength testing, destructive testing, microstructure analysis, hot isostatic testing and salt fog testing.
The company then falsely certified results of tests that had not been performed.
The problem was brought to light by whistleblower, and Wellman employee, Bradley Keller. As part of the settlement, Keller will receive $90,000.
The settlement amount was based on an analysis of the company's ability to pay. As a result of the settlement, the claims made by the DOJ remain allegations with no determination of liability.