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Feds Recover $23M in Boeing Overbilling Case

SAN ANTONIO - Boeing paid $23 million to settle claims that it overcharged the U.S. Air Force on maintenance contracts for the C-17 Globemaster aircraft.

Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza, current and former Boeing employees who filed the False Claims Act case, will receive $3.91 million of the Friday settlement as whistle-blowers.

Their 2007 complaint, in which the United States intervened, "alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing's Aerospace Support Center in San Antonio, Texas," a statement by the Justice Department states.

Chicago-based Boeing manufactures and maintains the C-17 Globemaster aircraft, "one of the military's major systems for transporting troops and cargo throughout the world."

Improper billed labor costs included "time its mechanics spent at meetings not directly related to the contracts," the Justice Department added.

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