L3 Technologies Inc. Agrees to Pay $62,000,000 to Resolve False Claims Act Allegations arising from Submission of False Cost or Pricing Data on Defense Contracts

 

L3 Technologies Inc., a corporation doing business in Utah, has agreed to pay the United States $62 million to settle allegations that its division, Communications System West, violated the False Claims Act and the Truth In Negotiations Act by knowingly making false statements and submitting and causing the submission of false claims by failing to disclose accurate, current, and complete cost or pricing data for communications equipment sold to various Department of Defense agencies, including the Air Force, Army, and Navy, and other government agencies.

L3 manufactures communications equipment to operate unmanned vehicles and retrieve data and visuals for military operations and intelligence. The devices are known as remote operations video enhanced receivers (ROVER), Video-Oriented Transceivers for Exchange of Information (VORTEX), and Soldier Intelligence, Surveillance, and Reconnaissance (SIR) receivers.  The United States has purchased ROVER, VORTEX, and SIR products through sole source, fixed price contracts, and L3 also has supplied these products under subcontracts with other prime contractors who manufacture unmanned vehicles.

The settlement resolves allegations that, between October 2006 and February 2014, L3 failed to disclose accurate, complete, and current cost or pricing data relating to the labor, material, and other costs for manufacturing the ROVER, VORTEX, and SIR products, and each of their versions and kits, and falsely certified that it had done so in dozens of government contract proposals.  The United States alleged that this conduct violated the Truth in Negotiations Act, which requires a contractor to provide to the government at the time of an agreement on price the most current, complete, and accurate facts that could reasonably be expected to affect price negotiations significantly.  The United States further alleged that, by failing to disclose accurate, complete, and current cost or pricing data, L3 knowingly submitted or caused the submission of false claims in connection with the ROVER, VORTEX, and SIR contracts and subcontracts in violation of the False Claims Act.

“The Department will vigorously pursue federal contractors who fail to provide truthful information during contract negotiations to ensure federal agencies do not overpay for products and services.” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division.

“Taking advantage of the resources that support the armed forces of the United States and other government agencies will not be tolerated,” said Acting United States Attorney Felice John Viti of the District of Utah. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to investigate and hold accountable individuals and contractors who defraud the government.”

“This $62 million settlement underscores the Air Force Office of Special Investigations (OSI) commitment to protecting national security and ensuring the integrity of Department of Defense acquisitions.,” stated OSI Special Agent Jeffery T.E. Herrin. “L3’s defective pricing in contract proposals for critical systems like ROVER, VORTEX, and SIR erodes public trust, and OSI, through robust law enforcement partnerships, will continue to uphold law and order within the defense industry.”

“This settlement is the result of a collaborative effort to guard against fraud, waste, and abuse, demonstrating the commitment of the Army Criminal Investigation Division (CID) and our partner agencies to safeguard public funds,” said Special Agent in Charge Olga Morales of the Department of the Army CID Southwest Field Office. “Investigating companies that defraud the Army is crucial to maintaining the trust of the American public and upholding the integrity of government contracting.”

The settlement resulted from a coordinated effort among the Civil Division’s Fraud Section and the U.S. Attorney’s Office for the District of Utah with assistance from the Defense Contract Management Agency, the Department of the Air Force, the Department of the Army, the Department of the Navy, and the Special Operations Command.  Senior Trial Counsel A. Thomas Morris and former Senior Trial Counsel Russell Kinner of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Carra Cadman for the District of Utah handled the matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

DEC Announces More Than $78 Million in Grant Funding Now Available for Water Quality Protection Projects Across the State

Funding Supports Updating Water Infrastructure, Combatting Harmful Algal Blooms, Protecting Drinking Water, Increasing Flood Resilience, and Preventing Potential Contamination

Applications Due July 31 

New York State Department of Environmental Conservation (DEC) Acting Commissioner Amanda Lefton announced the availability of funds for water quality improvement and protection projects. The funding is part of the millions of dollars now available through the Consolidated Funding Application recently announced by Governor Kathy Hochul for a wide range of programs. This year, at least $75 million is available through DEC’s Water Quality Improvement Project (WQIP) program and up to $3 million is available through DEC’s Non-Agriculture Nonpoint Source Planning and Municipal Separate Storm Sewer System (MS4) Mapping Grant (NPG) program. 

“Protecting water quality is a top priority for New York State and the grant funding announced today will help municipalities make critical investments to safeguard drinking water supplies, reduce flood risk, improve aging water infrastructure, and enhance climate resiliency,” said Acting Commissioner Lefton. “Under Governor Hochul’s leadership, it is clear New York is committed to safeguarding and improving water quality and ensuring communities statewide have the tools and resources needed to withstand future severe storms and flooding while creating good-paying jobs and spurring economic development.”

Applications for these grants are available through the New York State’s Consolidated Funding Application (CFA) through July 31, 2025, at 4 p.m. 

Water Quality Improvement Project Program

DEC’s WQIP program is a competitive, statewide reimbursement grant program that supports implementation of projects that directly improve water quality or habitat, promote flood risk reduction, restoration, and enhanced flood and climate resiliency, or protect a drinking water source. This round of available funding includes a total of at least $75 million from the following sources: State Environmental Protection Fund (EPF), Clean Water Infrastructure funding, the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022, and geographic-specific funding provided by the U.S. Environmental Protection Agency for Long Island Sound and Lake Champlain watersheds.  

In WQIP, maximum grant awards range from $100,000 to $15 million depending on the project type and population served, as identified in the application. Municipalities, including Indian Nations, Soil and Water Conservation Districts, and not-for-profit corporations are eligible to apply. Nine different project types are available for implementation funding in 2025, including: 

• Wastewater treatment improvement, including abatement of combined sewer overflows; 
• Non-agricultural nonpoint source pollution abatement and control, including green infrastructure projects; 
• Vacuum trucks for municipal separate storm sewer systems; 
• Land acquisition for drinking water source water protection; 
• Salt storage and road salt reduction practices; 
• Dam safety repair, rehabilitation, and removal; 
• Aquatic connectivity; 
• Marine district habitat restoration; and  
• Fish and wildlife habitat restoration and enhancement. 

Last year’s $222 million in announced WQIP grants is helping support municipal wastewater treatment upgrades, abatement and control of polluted runoff, land acquisition projects for drinking water protection, salt storage construction and road salt reduction practices, aquatic connectivity restoration, fish and wildlife habitat restoration and enhancement, and marine district habitat restoration.  

Non-Agricultural Nonpoint Source Planning and Municipal Separate Storm Sewer System Mapping

DEC’s NPG program funds projects that help pay for the initial planning of non-agricultural nonpoint source water quality improvement projects, such as undersized culvert replacements, in-waterbody controls for nutrients, green infrastructure technologies, and State permit-required stormwater system mapping in urban areas. These projects will support subsequent work for implementation for nonpoint source water quality improvement projects and will reduce the amount of polluted stormwater and runoff entering lakes, rivers, and streams, and improve resiliency against the impacts of climate change.  

In NPG, maximum grant awards range from $50,000 to $75,000 for the Nonpoint Source Planning category depending on the report type and from $75,000 to $400,000 for the MS4 Mapping category depending on whether the application is on behalf of a collaborative, as identified in the program overview. There is no minimum award amount. Municipalities, including Indian Nations, and Soil and Water Conservation Districts, are eligible to apply for this opportunity. Funding for this program is supported by the State's EPF.  

Interested potential applicants can learn more about the WQIP and NPG programs by attending a webinar hosted by DEC and scheduled for June 9, 2025, at 1 p.m. There will be time available for questions. Registration is required.

For additional program information and requirements, including maximum award amounts, required match, and descriptions of project types or eligible grant categories, view DEC's WQIP and NPG webpages.

New York's Commitment to Water Quality   

New York State continues to increase its nation-leading investments in water infrastructure. With $500 million allocated for clean water infrastructure in the recently Enacted 2025-26 State Budget, New York will have invested a record $6 billion in water infrastructure since 2017. The budget also included an increase to the EPF for a record total of $425 million. Initiatives in Governor Hochul’s State of the State are ensuring ongoing coordination with local governments and helping communities to leverage these investments. Governor Hochul announced $435 million in grants to 102 projects in November, featuring increased awards for wastewater projects for smaller, disadvantaged communities. The Governor also expanded the State Environmental Facilities Corporation’s (EFC) Community Assistance Teams to help small, rural and disadvantaged communities leverage this funding and address their clean water infrastructure needs. Any community needing assistance with water infrastructure projects is encouraged to contact EFC. 

About the Consolidated Funding Application 

The Consolidated Funding Application was created to streamline and expedite the grant application process. The CFA process marks a fundamental shift in the way state resources are allocated, ensuring less bureaucracy and greater efficiency to fulfill local economic development needs. The CFA serves as the single-entry point for access to economic development funding, ensuring applicants no longer have to slowly navigate multiple agencies and sources without any mechanism for coordination. Now, economic development projects use the CFA as a support mechanism to access multiple state funding sources through one application, making the process quicker, easier, and more productive. Learn more about the CFA here.  

Weekly News from State Senator Gustavo Rivera!

SENATOR RIVERA'S CDPAP ACCOUNTABILITY ACT AND 21 OTHER BILLS PASS THIS WEEK'S HEALTH COMMITTEE MEETING

This week, Senator Rivera held the eighth Health Committee meeting of the year, where 22 bills, including 9 of his own, were passed. Senator Rivera was especially proud that his bill S.1189, also known as the CDPAP Accountability Act, was among the bills that passed.

Given the utter failure of the single FI transition, the CDPAP Accountability Act seeks to return stability to an essential program that is reeling from a chaotic transition that left patients without care and workers without a paycheck. This bill will balance the program's integrity by weeding out bad actors, access to services, provide opportunities to businesses throughout the State that have a proven track record of delivering quality services, and restore consistency in fiscal intermediary operations

To watch Senator Rivera's speech at the Health Committee meeting about the CDPAP Accountability Act, click here.

This week, three bills sponsored by Senator Rivera passed the floor of the New York State Senate: 

• S.1226: The Local Input in Community Healthcare (LICH) Act: This bill will require community notification and stakeholder engagement when a general hospital seeks to close entirely or a unit that provides maternity, mental health or substance use care.

• S.1618: The New York Affordable Drug Manufacturing Act: This bill will direct the Commissioner of Health to enter into partnerships to increase competition, lower prices, and address shortages in the market, to reduce the cost of prescription drugs for all.

• S.355: Program Eligibility for plans comparable to Medicare: This bill will allows individuals who have comparable coverage to a Medicare part D plan to also be eligible for Elderly Pharmaceutical Insurance Coverage (EPIC) program if otherwise qualify.

"I am especially proud that the Local Input in Community Healthcare Act has once again passed after the Governor vetoed it last year. We must address gaps in the state’s review process for proposed hospital and critical care unit closures and ensure that communities have a voice in decisions affecting their access to local hospital care," said Senator Rivera.

Watch Senator Rivera's speech on the floor about his LICH Act here.

SENATOR RIVERA ATTENDS THE EMS MEMORIAL CEREMONY HOSTED BY THE NY STATE DEPARTMENT OF HEALTH

This week, Senator Rivera participated in the New York State Emergency Medical Services (EMS) Memorial, a solemn event held at the Empire State Plaza in Albany. This event, part of National EMS Week, holds great significance as it honors the brave EMS personnel, both volunteer and career staff, who made the ultimate sacrifice in service to the people of New York.

The memorial also honors those who responded to the World Trade Center attacks after September 11, 2001, including the rescue operations and the months-long recovery efforts that followed.

Senator Rivera paid his respects to the family of Captain Robert R. De Leon, Jr., a constituent of District 33 in The Bronx. Captain De Leon dedicated 36 years of service to the City of New York, with a significant portion of his career spent serving the people of The Bronx, where he played a vital role in ensuring their protection and care.

His work went beyond just responding to emergencies. He helped shape and maintain the infrastructure that supported the city's emergency medical care system, leaving a lasting impact on the community. Additionally, Captain De Leon responded to the devastation at the World Trade Center, where he was an integral part of the heroic rescue and recovery efforts.

This week, Senator Rivera responded to misinformation going around about his groundbreaking bill, the New York Health Act (NYHA), through a video posted in his social media accounts.

"To my labor brothers and sisters: NYHA would improve your healthcare (and your leverage in bargaining), not take it away. Let’s work together to make it happen," said Senator Rivera.

To watch the video, click here.

Follow the New York Health Campaign here and join us in the fight for guaranteed healthcare!

On this Memorial Day, we honor and remember the courageous Americans who gave their lives in service to our country. To all our fallen heroes - your sacrifice and that of your families will not be forgotten.

SENATOR RIVERA TOURS P.S.246 IN FORDHAM!

Today, Senator Rivera toured P.S. 246 located in the Fordham section of his district. Joined by Principal Andrea Johnson, Senator Rivera had the opportunity to spend a few special moments with students and teachers on Career Day.

Thank you to Principal Johnson for the invitation, and to all the staff and students for the warm welcome!

In case you missed it, last week Senator Rivera hosted a Homeownership 101 Virtual Training in partnership with the New York Legal Assistance Group (NYLAG).

During the virtual training, participants learned about a variety of topics including the differences between co-ops, condos, and homes; the processes involved in buying and selling these types of properties; the government resources available to those homeowners who are at risk of foreclosure or currently in foreclosure proceedings, and so much more!

View a replay of this webinar here and click here to download the presentation

UPDATE FROM THE MTA AND NEW YORK CITY DOT: MOVING BUSES FASTER

JustFix, in partnership with the Housing Justice for All coalition, has launched Good Cause NYC a powerful new tool designed to help NYC tenants take advantage of their new protections. 

By analyzing public data from multiple sources, the tool helps cut through the confusion, making it easier for tenants to learn if they’re covered to fight back against unjust rent hikes and eviction.

With this new tool they're putting knowledge and power back in the hands of tenants.

How does Good Cause NYC help?

• Eligibility Screener: Enter your address and answer a few short questions to find out if you are covered.

• Your Rights: No matter what result you get, they offer next steps to learn about the protections you have and how to assert your rights.

• Rent Increase Calculator: If you know you’re covered by Good Cause, you can use their new rent increase calculator to learn if your rent hike is considered “unreasonable” by the law.

Visit Good Cause NYC here for more information.

Attorney General James’ Office of Special Investigation Releases Report on Death of Steven Zalewski

 

New York Attorney General Letitia James’ Office of Special Investigation (OSI) released its report on the death of Steven Zalewski, who was declared dead on October 9, 2023 after a motor vehicle incident involving a member of the Dewitt Police Department (DPD) in Dewitt, Onondaga County. Following a thorough investigation, which included review of DPD reports, interviews, and body-worn camera footage, and comprehensive legal analysis, OSI concluded that a prosecutor would not be able to prove beyond a reasonable doubt that the involved DPD officer caused Mr. Zalewski’s death or committed a crime, and therefore criminal charges are not warranted in this case.

On the evening of October 9, a DPD officer was driving in a marked police car while responding to a residence in Dewitt. The officer was driving on Bridge Street, a multi-lane roadway with four southbound lanes and four northbound lanes separated by a concrete median, with a speed limit of 40 MPH. The officer was traveling southbound in the lane closest to the median at 28 MPH when he drove over Mr. Zalewski, who was lying on the ground. Mr. Zalewski was pronounced dead at the scene.

In New York, proving criminally negligent homicide requires proving beyond a reasonable doubt that a person caused a death when they failed to perceive a substantial and unjustifiable risk that death would occur; that the failure to perceive the risk was a gross deviation from a reasonable person’s standard of care; and that the person engaged in blameworthy conduct. In this case, the investigation could not determine whether Mr. Zalewski had already been struck by another vehicle, or in fact had already died, when the officer’s car ran over him. In addition, there is no evidence that the officer was speeding, driving while distracted, or impaired by drugs or alcohol. The body-worn camera shows that the officer was not using his phone or any equipment in the police car. While toxicology testing showed that the officer was on a prescription medication, there is no evidence that it affected his ability to operate his patrol vehicle.

In this case, the evidence does not establish beyond a reasonable doubt that the officer’s conduct was a gross deviation of the standard that would have been observed by a reasonable person in the same circumstances, or that the officer consciously disregarded a substantial and unjustifiable risk of death. Therefore, OSI concluded that there was insufficient evidence to pursue criminal charges.

Determining the possibility of alcohol impairment is an essential component of investigating vehicular crashes. In this case, the officer was never administered a Portable Breath Test (PBT) and was not asked to provide a blood sample for two and a half hours after the incident. While there is no evidence that the officer driving the car was impaired by drugs or alcohol, OSI recommends that all patrol officers and supervisors be trained in the administration of PBTs and field sobriety tests so that any on-duty or off-duty police officer, or any civilian, involved in a motor vehicle collision can be tested as close to the time of the collision as practicable to ensure the most accurate results. OSI also recommends that when a motor vehicle collision results in serious physical injury or the death of another person, police agencies should ask the involved officer to voluntarily consent to toxicology testing.

Corporate Insider And Two Associates Plead Guilty To Million-Dollar Insider Trading Scheme

 

Jonathan Whitesides, Daniel McCormick, and Brent Cranmer Admit to Illegal Trading in Kaman Corp. in Advance of Acquisition Announcement

Jay Clayton, the United States Attorney for the Southern District of New York, announced that JONATHAN WHITESIDES, DANIEL MCCORMICK, and BRENT CRANMER pled guilty to committing securities fraud in connection with a scheme to trade in securities of Kaman, Corporation (“Kaman”) using inside information. WHITESIDES and MCCORMICK pled guilty before U.S. District Judge Margaret Garnett. CRANMER pled guilty before Judge Garnett on May 12, 2025. 

“The three defendants engaged in a classic insider trading scheme—buying call options on the stock of a company where insiders know the trading price is about to increase substantially, but the market does not know yet.  Investors expect, and our law requires, that insiders will not misuse confidential information for personal gain,” said U.S. Attorney Jay Clayton. “This Office is committed to prosecuting securities fraud and maintaining a level playing field for all investors.  We will continue working closely with our law enforcement partners to detect, investigate, and bring to justice those who act to undermine the integrity of our financial markets.” 

FBI Assistant Director in Charge Christopher G. Raia said: “The defendants admitted to using material nonpublic information for their benefit—more than one million dollars in illicit gains. Insider trading is insidious, damaging the integrity of our financial institutions. The FBI will hold accountable those who attempt to illegally profit from securities fraud schemes in the criminal justice system.”

According to the allegations contained in the Information and Superseding Information and statements made in public filings and in public court proceedings:

WHITESIDES, MCCORMICK, and CRANMER engaged in a scheme to reap illegal profits by misappropriating and trading on material nonpublic information concerning the planned acquisition of Kaman, a publicly-traded company, in violation of duties of trust and confidence owed to the company and its shareholders.

Beginning December 18, 2023, CRANMER, who was an executive at a Kaman subsidiary, learned that Kaman was negotiating an all-cash acquisition at a premium price. CRANMER promptly shared this confidential information with his friend, WHITESIDES, intending for it to be used to purchase Kaman securities before the public announcement of the acquisition. Acting on this information, WHITESIDES acquired Kaman call options in both his own account and in an account in the name of a family member. WHITESIDES subsequently shared the confidential information with his friend, MCCORMICK, who then purchased Kaman stock and call options. Both WHITESIDES and MCCORMICK knew they were trading on confidential information obtained through a breach of a duty owed to Kaman.

Dissatisfied with his anticipated compensation from the acquisition, CRANMER expressed interest in purchasing Kaman securities through an intermediary before the public announcement of the acquisition, acknowledging he was restricted from trading directly. WHITESIDES attempted to arrange a nominee trader for CRANMER, asking MCCORMICK if he would be “comfortable trading on behalf of others” and “using others[’] money.”  CRANMER provided WHITESIDES with $10,000 to fund purchases of Kaman options through MCCORMICK. However, no trades were executed on CRANMER’s behalf before the acquisition announcement.

When Kaman publicly announced on January 19, 2024, that it had agreed to be acquired by a private equity firm in a premium, all-cash transaction, Kaman’s share price rose considerably.  WHITESIDES and MCCORMICK sold their Kaman securities that same day, collectively generating more than $1 million in illegal profits. Afterwards, WHITESIDES attempted to conceal evidence by deleting incriminating text messages.

JONATHAN WHITESIDES, 46, of Mission Viejo, California, DANIEL MCCORMICK, 61, of Coto de Caza, California, and BRENT CRANMER, 52, of Mission Viejo, California, were each charged with securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WHITESIDES is scheduled to be sentenced by Judge Garnett on October 3, 2025, at 10:30 a.m. MCCORMICK is scheduled to be sentenced by Judge Garnett on September 26, 2025, at 10:30 a.m. CRANMER is scheduled to be sentenced by Judge Garnett on November 10, 2025.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission.