Suit Alleges Defense Fraud: The U.S. Attorney’s...
From Times Staff and Wire Reports
Suit Alleges Defense Fraud: The U.S. Attorney’s Office in Brooklyn has filed a suit charging Sperry Corp., Unisys Corp. and Honeywell Inc. with defrauding the government by inflating cost estimates on defense work. The suit, which seeks at least $48 million in damages, charges that in 1979 and 1980, Sperry underbid on a flight trainer contract by $1.5 million to get a leg up on competitors. Sperry was awarded a succeeding contract as well, but in its cost proposals prepared after the awards, it secretly inflated its anticipated costs, the complaint charges. In 1986, Sperry and Burroughs Corp. merged to become Unisys. Later that year, Honeywell bought the Unisys division cited in the lawsuit.
