The Office of the United States Attorney for the District of Vermont announced that Galvion

The Office of the United States Attorney for the District of Vermont announced that Galvion, Ltd. has agreed to pay $2,495,000 for violating the False Claims Act by selling products to the United States Department of Defense that weren’t sourced in the U.S. Galvion is headquartered in Montreal, Canada with three production facilities located in the United States, including one in Newport. The company makes protective head systems for use by law enforcement and military personnel. Among the company’s products is the modular suspension system,  a helmet insert. According to the U.S. Attorney’s Office, an investigation determined that between Jan. 1, 2016 and June 30, 2019, the company used a non-domestic source of pads in the MSS products, as well as a foreign source of nets and harnesses for some orders. The government alleges that these acts violated the False Claims Act, a civil fraud statute that prohibits the knowing submission of false claims to the government. “Fraud by government contractors and subcontractors is a serious issue and can erode the integrity of government programs,” said United States Attorney Nikolas Kerest. “By selling improperly sourced products to the military, the company placed profits over compliance with clear regulations.” During the period in question, the MSS was a product of Revision Military Ltd (Revision); in September 2019, Revision’s owner sold the company and certain product lines but retained the protective head system business, which thereafter operated as Galvion. The $2,495,000 fine amount reflects Galvion’s acceptance of responsibility, cooperation with the government investigation, and compliance measures Galvion implemented after 2019, the U.S. Attorney’s office noted.