Defense Contractor to Pay $628K to Settle Allegations

Company admits to selling non-compliant headsets to the U.S. Army, prompting a federal investigation.

U.S. Attorney Philip Sellinger announced that a Vermont-based defense contractor has agreed to pay $628,328 to resolve allegations that it sold substandard equipment to the U.S. Army. The settlement addresses conduct by Live Wire, LLC from July 13, 2018, through November 21, 2019, relating to electronic communications headsets provided to the Army.

According to the official press release, “The settlement resolves allegations that from July 13, 2018 through November 21, 2019, Live Wire, LLC made false claims in conjunction with contracts awarded to it by the United States Army. Live Wire contracted with the Army to sell electronic communications headsets and admits in the settlement that it provided non-compliant headsets that were not tested to the appropriate military specifications prior to their sale. Upon discovering that the headsets were not properly tested, Live Wire self-disclosed that information to the Government and cooperated with the investigation.”

U.S. Attorney Sellinger credited special agents of the United States Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and special agents of the United States Army, Army Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Joel Kirch, with investigating the allegations against Live Wire.

The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud Unit in Newark.

Local and federal officials emphasize that robust oversight of defense contractors protects tax dollars and ensures that military personnel receive equipment meeting required standards. The settlement underscores the importance of transparency and compliance in government procurement.