Question

1. The U.S. Air Force awards a $3 million contract to Wire, Inc. to supply wire harness kits for installation in all its fighter aircraft in the F-16 program, specifying new and unused couplings. Wire, Inc. orders remanufactured couplings from its supplier, incorporates them into the wire harnesses, and delivers the kits to the air force, which fails to note any discrepancies upon inspection. The air force discovers the remanufactured couplings during an investigation following the crash of an F-16 aircraft containing one of the kits. Which of the following is NOT a remedy available to the air force?

1. cancellation of all government contracts with Wire, Inc., including those unrelated to harness kits
2. action under the Major Fraud Act seeking 10 years of imprisonment for those responsible
3. revocation of acceptance under the contract, based on Wire, Inc.'s fraudulent misrepresentations
4. action under the Civil False Claims Act seeking a civil penalty of $10,000 for each violation, plus treble damages

Answer 1

b. action under the Major Fraud Act seeking 10 years of imprisonment for those responsible

As this considered as a White collar crimes, hence imprisonment will not be considered as a remedy for the same.