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Defense contractor settles claims it defrauded government by supplying used parts

Aerometals, a California defense contractor, will pay the federal government $251,000 to resolve charges it defrauded the Air Force and Army by supplying used and reconditioned parts that it said were new.

The aircraft parts company had been acquitted of criminal charges in a 2003 jury trial.

The whistleblower who brought the suit under the False Claims Act will receive $36,000 as his share of the settlement.

The Sacramento Business Journal ran a February 4, 2005 story on the settlement.

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