A defense contractor located in Stockton and a private equity firm have been hit with a significant fine for not disclosing cybersecurity violations.
The Department of Justice announced that Aero Turbine Inc. and Gallant Capital Partners LLC have agreed to pay $1.75 million to resolve their liability under the False Claims Act for knowingly failing to comply with cybersecurity requirements in an Aero Turbine contract with the Air Force.
The big picture: The payment resolves the liability of the two companies for knowingly submitting or causing others to submit false or fraudulent claims for payment on an Air Force contract, which were allegedly false or fraudulent because they had not complied with the contract’s cybersecurity requirements…