1. Why Should My Conscience Bother Me? Engineering group “All that’s left to do is ship you the brake”  Robert Sink to LTV “All we need is a better lining”  John Warren “Regardless of what the brake does on the tests, it’s going to qualified”  Van Horn “I’ve sold myself, I make me sick”  Searle Lawson

2. Lab testing group “No false data or false reports are going to come out of this lab”  Gretzinger “Bills aren’t paid with personal satisfaction, nor are house payments made with ethical principles”

3. Goodrich Questions What factors contributed to the data falsification at Goodrich? Prior history Timing of commitments Personalities What pressures did the individual employees face? What could any of the key players have done differently?

4. Federal False Claims Act (1986 amendment) False claim Falsified reports, “hot stamping” (stating product has met qualifications, yet it has not been tested or in fact failed to meet government specifications)  Medicare & Medicaid (Arizona doctors, Columbia)  Defense contracts (Hercules example) Applies ONLY when federal government money is involved

5. Financial incentives for the whistleblower Whistleblower may receive between 14% and 25% of the amount of the amount recovered by the government Recovery amount:  Triple the amount of the false claim, plus a penalty for of $5,000 to $10,000 per occurrence, plus everyone’s attorney’s fees