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Why Should My Conscience Bother Me?. Engineering group “All that’s left to do is ship you the brake” Robert Sink to LTV “All we need is a better lining” John Warren “Regardless of what the brake does on the tests, it’s going to qualified” Van Horn “I’ve sold myself, I make me sick”
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Why Should My Conscience Bother Me? • Engineering group • “All that’s left to do is ship you the brake” • Robert Sink to LTV • “All we need is a better lining” • John Warren • “Regardless of what the brake does on the tests, it’s going to qualified” • Van Horn • “I’ve sold myself, I make me sick” • Searle Lawson
Lab testing group • “No false data or false reports are going to come out of this lab” • Gretzinger • “Bills aren’t paid with personal satisfaction, nor are house payments made with ethical principles”
Goodrich Questions • What factors contributed to the data falsification at Goodrich? • Prior history • Timing of commitments • Personalities • What pressures did the individual employees face? • What could any of the key players have done differently?
Federal False Claims Act (1986 amendment) • False claim • Falsified reports, “hot stamping” (stating product has met qualifications, yet it has not been tested or in fact failed to meet government specifications) • Medicare & Medicaid (Arizona doctors, Columbia) • Defense contracts (Hercules example) • Applies ONLY when federal government money is involved
Financial incentives for the whistleblower • Whistleblower may receive between 14% and 25% of the amount of the amount recovered by the government • Recovery amount: • Triple the amount of the false claim, plus a penalty for of $5,000 to $10,000 per occurrence, plus everyone’s attorney’s fees