Aero Turbine Inc., a defense contractor based in Stockton, and Gallant Capital Partners LLC, a Los Angeles-based private equity firm, have agreed to pay $1.75 million to resolve allegations that they failed to meet cybersecurity requirements under a U.S. Air Force contract, the Department of Justice announced Thursday.
Federal investigators said that from 2018 to 2020, Aero Turbine did not implement key cybersecurity controls required under the National Institute of Standards and Technology guidelines.
The companies also allegedly shared sensitive defense information with a software firm in Egypt without proper authorization, the press release issued Thursday noted.
The settlement resolves their liability under the False Claims Act for allegedly submitting false claims tied to noncompliance with cybersecurity protocols, prosecutors said.
Officials said the case highlights the importance of cybersecurity compliance in safeguarding national defense information.
“Every defense contractor must provide adequate security to safeguard covered defense information,” said Acting U.S. Attorney Kimberly A. Sanchez of the Eastern District of California.
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