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Probation Commitment Order stated in pertinent part that Stencel
would pay a fine of $100,000 ($10,000 for each of the 10 agreed
counts) and that Stencel shall "make full restitution for all
losses, to be determined by the U.S. Navy at a later date".
On July 12, 1985, the Navy Department lifted the suspension
order against Talley and all of its subsidiaries, with the
exception of Stencel. During the time that Stencel remained in
suspended status, the Navy Department generally was prohibited
from purchasing either new ejection seats or replacement parts
for ejection seats from Stencel.
In September 1985, Joyce R. Branda (Ms. Branda), a trial
attorney with the Fraud Section, Commercial Litigation Branch,
Civil Division, U.S. Department of Justice, was assigned to
represent the Government in the Stencel matter. Upon assignment
to the case, Ms. Branda received evidence that all four of
Stencel's major departments--production, engineering, inspection,
and quality assurance--had engaged in labor mischarging, and that
mischarging may have occurred as early as 1979.
As a result of the alleged mischarging, Talley and Stencel
faced potential civil liability under the False Claims Act (FCA),
31 U.S.C. section 3729 (1982),2 the Truth in Negotiation Act
2 At the time of Stencel's indictment, 31 U.S.C. sec. 3729
(1982) provided in pertinent part:
A person not a member of an armed force of the
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