WASHINGTON – A Canadian firm and its American subsidiary have been caught selling defective bulletproof vests to law enforcement agencies, putting the lives of officers at risk. Lincoln Fabrics Ltd., a Canadian weaver of ballistic fabrics, and its American subsidiary, have agreed to pay the United States $4 million to settle the United States’ lawsuit against Lincoln for violations of the False Claims Act in connection with their role in the weaving of Zylon fabric used in the manufacture and sale of defective Zylon bullet-proof vests.
The United States alleged that the Zylon in these vests lost its ballistic capability quickly, especially when exposed to heat and humidity. The United States further alleged that Lincoln was aware of the defective nature of the Zylon by at least December 2001, but continued to sell Zylon for use in ballistic armor until August 2005, when the National Institute of Justice issued a report that Zylon degraded quickly in ballistic applications. At that time, all American body armor manufacturers stopped using Zylon in body armor.
Lincoln Fabrics Ltd. sold Zylon fabric to several companies, including Second Chance Body Armor Inc., First Choice Armor Inc. and Point Blank Body Armor Inc. These vests were purchased by the United States, and by various state, local, and/or tribal law enforcement agencies, who were partially reimbursed by the United States.
Companies that knowingly sell the government defective bulletproof vests not only commit fraud, they put the lives of our law enforcement women and men at risk, said Tony West, Assistant Attorney General for the Civil Division. We will pursue vigorously allegations that these or any other companies manufactured flawed vests, knew about their problems, yet sold them anyway.
This settlement is part of a larger investigation of the body armor industry’s use of Zylon in body armor. As part of today’s agreement, Lincoln has pledged its cooperation in the Government’s on-going investigation. The United States previously has settled with six other participants in the Zylon body armor industry for over $54 million. Additionally, the United States has pending lawsuits against Toyobo Co., Honeywell Inc., Second Chance Body Armor, Inc. and First Choice Armor Inc.
The settlement announced today resolves the United States’ lawsuit against Lincoln, which was filed in October 2009. The United States alleged that Lincoln violated the False Claims Act by knowingly selling Zylon fabric for use in ballistic armor, despite being aware of its defective nature. The United States further alleged that Lincoln continued to sell Zylon fabric until August 2005, when the National Institute of Justice issued a report that Zylon degraded quickly in ballistic applications.
The total recoveries in False Claims Act cases since January 2009 have topped $3 billion, with this settlement being part of the government’s emphasis on combating fraud. The Justice Department will continue to pursue vigorously allegations of companies that knowingly sell defective bulletproof vests to law enforcement agencies.
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Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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