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Israeli Jet Engine Scandal Type: False Claims Act
Working in Israel as a manager of overseas
aircraft operations for General Electric, Chester L. Walsh
discovered federal funds being shifted from government approved
projects to unapproved projects. A powerful Israeli General
was skimming huge sums into his personal accounts. When the
General encountered a whistleblower, he engaged a hit man
to fix the problem. In addition, high ranking General Electric
managers were also participating in the fraudulent scheme.
Mr. Walsh did not know who he could trust. He began collecting evidence, later
hiding this evidence in his household furnishings when he was transferred to
Switzerland. Learning of our firm’s fight with General Electric on behalf
of Jack Gravitt from reviewing the Congressional Record, Mr. Walsh brought a
qui tam action against General Electric. His case resulted in a $59.5 million
civil settlement from General Electric. In addition, the company pled guilty
to a four count criminal indictment, and it paid a $10 million fine. The United
States also recovered over $11 million from a secret Swiss bank account. The
Israeli Air Force General and a General Electric manager are both currently
guests of their respective country’s penal institutions for their parts
in the fraud schemes. Mr. Walsh was awarded 22.5% of the recovery.
Case: United States ex rel. Walsh v. General Electric Co. Case No. C 1 97 255 (S.D. Ohio)