Northrop Whistle-Blower to Receive $864,000 Award

A federal judge has ruled that Leo Brajas, the whistle-blower who alerted authorities to problems on a cruise missile guidance system produced by Northrop, is entitled to 10.8% of an $8-million settlement reached between the government and Northrop last year.

In a related action, Judge David V. Kenyon has imposed sanctions on Herbert Hafif, the attorney representing Brajas and Patricia Meyer against Northrop. A government source said sanctions of approximately $15,000 will be sought.

The sanctions were requested by the U.S. Attorney’s office in Los Angeles, which objected to a legal brief filed by an attorney at Hafif’s office. The brief argued that former Deputy U.S. Atty. William Fahey “lied” in a declaration to the court, an assertion that the U.S. Attorney’s office branded “slanderous.”

The $864,000 Brajas settlement is significantly below the minimum sharing ratio permitted by the federal False Claims Act, which allows individuals to sue defense contractors on behalf of the government. The law provides that 15% to 25% of any awards be allocated to the whistle-blower.

But federal prosecutors argued--and Kenyon found--that Brajas participated in the planning and execution of test fraud on the missile guidance system at Northrop. Prosecutors had asked that Brajas receive nothing, even though he was recognized as the original source of the allegations. Hafif had sought the full 25%.

Hafif said the Justice Department has paid out less than 10% of the $147 million in awards under the False Claims Act to whistle-blowers--less than the statutory minimum.

“It is getting the message out to whistle-blowers that, even when they win, they can’t get their fair share,” Hafif said. As for the sanctions, he responded, “How can the truth be slanderous?”