Defense Contractor Fined $25 Million For Fraud

CHICAGO (AP) -- A suburban Chicago defense contractor has agreed to pay a fine and damages totaling $25 million to settle allegations that it overcharged the government in a series of military contracts over 10 years.

According to federal prosecutors, MPC Products Corp. of Skokie, a manufacturer and supplier of parts used in fighter jets, helicopters and other military systems, has agreed to plead guilty to one count of wire fraud and pay a $2.5 million fine plus $22.5 million in civil damages.

A company that acquired MPC last year, long after the alleged overcharges occurred, issued a statement confirming the plan to plead guilty.

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