AAR Corp, False Claims Act, Illinois 2023

AAR Corp., a Wood Dale, Illinois-based company, and its subsidiary, AAR Airlift Group Inc. (Airlift), have agreed to pay $11,088,000 to resolve allegations that they violated the False Claims Act in connection with aircraft maintenance services performed by Airlift on two United States Transportation Command (USTRANSCOM) contracts.

The allegations involve helicopters that Airlift owned and maintained for use in transporting Department of Defense (DoD) cargo and personnel in support of DoD missions in Afghanistan and Africa. The settlement resolves allegations that Airlift knowingly failed to maintain nine aircraft in accordance with contract requirements, and that because of this failure, the helicopters were not airworthy and should not have been certified by Airlift as “fully mission capable.”

AAR and Airlift have also agreed to pay $429,273.69 to resolve a separate Federal Aviation Administration (FAA) matter citing certain deficiencies in Airlift’s helicopter maintenance.

“The knowing failure to comply with contractual obligations is unacceptable, particularly when such violations raise safety concerns” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “Today’s settlement reaffirms that the government will hold contractors to the quality and safety standards in their contracts that are intended to protect our men and women in uniform.”

AAR Corp. is a Wood Dale, Illinois-based company. The company and its subsidiary, Airlift, are the defendants in this case. The exact date of the crime is unknown, but the settlement was reached in 2023.

The sentence or outcome in this case is a $11.1 million settlement. AAR Corp. will pay $11,088,000 to resolve the False Claims Act allegations and an additional $429,273.69 to resolve a separate FAA matter.

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