LAWSUITS NEWS & LEGAL INFORMATION
Federal Audit
San Francisco, CA: (May-05-08) The US Government brought criminal and civil charges against Herley Industries Inc., a Lancaster, PA, based aerospace, defense and medical products company, alleging that it obstructed an audit relating solely to sales in 2002 of power heads to the US government. The federal suit also accused Herley's former chairman, Lee Blatt, of a misdemeanor violation of the tax code.
Sources close to the negotiations stated that the two sides had reached a settlement agreement, in which Herley pleaded guilty to two counts of obstructing an audit and said that it will pay a fine of $3.5 million. The agreement stated that the other 31 counts of the indictment, which also addressed a contract for the sale of voltage control oscillators in January 2001, have been dismissed.
Department of Justice officials said that the civil liability for the matters mentioned in the indictment has been dismissed in exchange for the payment of $6 million. The deal ends all claims that hindered the company from receiving new federal contract awards. Under the terms of the settlement agreement, Blatt has been fined $25,000, has received a term of probation of one year and is required to perform some community service [FORBES: HERLEY INDUSTRIES REACHES SETTLEMENT AGREEMENT WITH US GOVERNMENT]
Published on May-7-08
Sources close to the negotiations stated that the two sides had reached a settlement agreement, in which Herley pleaded guilty to two counts of obstructing an audit and said that it will pay a fine of $3.5 million. The agreement stated that the other 31 counts of the indictment, which also addressed a contract for the sale of voltage control oscillators in January 2001, have been dismissed.
Department of Justice officials said that the civil liability for the matters mentioned in the indictment has been dismissed in exchange for the payment of $6 million. The deal ends all claims that hindered the company from receiving new federal contract awards. Under the terms of the settlement agreement, Blatt has been fined $25,000, has received a term of probation of one year and is required to perform some community service [
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