Swiss Automation Inc., an Illinois-based precision machining company, has agreed to fork over $421,234 to settle claims that it didn't quite cut it with cybersecurity measures for Defense Department parts blueprints. According to an announcement from the Justice Department, the settlement handsomely resolves allegations that the firm caused false claims to be submitted by skimping on required cybersecurity for drawings of parts supplied to DoD prime contractors.
The company was supposed to bolster its cyber defenses following the National Institute of Standards and Technology Special Publication 800-171 (NIST SP 800-171) guidelines—rules that have been hanging over defense contracts and subcontracts since 2017. Yet, claims the Justice Department, Swiss Automation knew full well that the Cybersecurity Maturity Model Certification (CMMC) program also packed a punch in security expectations for DoD contractors and suppliers. In a statement obtained by the Justice Department, Assistant Attorney General Brett A. Shumate cautioned that suppliers to defense contractors ought to stay sharp as cyber threats evolve.
"As cyber threats continue to evolve, suppliers to defense contractors must be vigilant and take the steps required to protect sensitive government information from bad actors," Shumate noted. U.S. Attorney Andrew S. Boutros for the Northern District of Illinois chimed in to emphasize that playing defense against cybercriminals is no small-time game—especially for defense contractors who deal in sensitive data. Specifying the stakes, Special Agent-in-Charge Jason Sargenski of the Defense Criminal Investigative Service hammered home the point that protecting national security means locking down those precious data bits against ever-crafty cyber threats.
The shaky ground on which Swiss Automation stood was first called out by whistleblower Jaime Gomez, a former quality-control manager at the company, who brought the lawsuit under the False Claims Act—a move that now nabs him a cool $65,291 slice of the settlement pie. The case, which is codenamed United States ex rel. Gomez v. Swiss Automation Inc., No. 1:22-cv-4328, was a joint effort between multiple Justice Department and military branches, with Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Kathryn Kelly pitching in on the resolution.
