Tungsten Products Maker Settles False Claims Act Allegation for $5.6 Million

San Diego-based tungsten products manufacturer Tungsten Heavy Powder settled a False Claims Act allegation for $5.6 million for false origin claim, the U.S. Attorney's Office for the Southern District of California said in an April 29 news release. The producer was accused of falsely certifying that it sourced materials from the U.S. for items made under contract with the government of Israel, funded by the U.S. Defense Security Cooperation Agreement Agency. The U.S. accused THP of falsely declaring that its Chinese-origin tungsten from China was from the U.S. The U.S. also alleged THP falsely certified that manufacturing occurred in the U.S., when it instead produced its products via a contract with a Mexican maquiladora factory.

The FCA allegation was brought by former THP employee Gregory Caputo and Global Tungsten & Powders Corp. under the act's qui tam provision, the Justice Department said. Caputo and Global Tungsten will receive 17% of the settlement proceeds, amounting to around $950,000.