BREAKING: Swiss Automation Inc., an Illinois-based precision machining firm, has just agreed to pay $421,234 to settle serious cybersecurity negligence claims involving Defense Department parts blueprints. This urgent settlement comes as the Justice Department confirms that the company failed to implement adequate cybersecurity measures as required by federal guidelines.
The Justice Department’s announcement today highlights that Swiss Automation’s negligence led to false claims being filed due to inadequate protections for sensitive drawings supplied to Department of Defense (DoD) prime contractors. These claims underscore the critical need for compliance with the National Institute of Standards and Technology Special Publication 800-171 (NIST SP 800-171) guidelines, which have been enforced since 2017.
Officials stress that the company’s failure to adhere to the Cybersecurity Maturity Model Certification (CMMC) standards significantly heightened the risk of cyber threats against national security. Assistant Attorney General Brett A. Shumate warned, “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.”
This settlement is a critical reminder for all defense contractors about the importance of robust cybersecurity measures. U.S. Attorney Andrew S. Boutros for the Northern District of Illinois emphasized that defending against cybercriminals is a serious responsibility, particularly for those handling sensitive data.
The whistleblower behind this case, Jaime Gomez, a former quality-control manager at Swiss Automation, initially raised concerns that led to the lawsuit under the False Claims Act. As part of the settlement, Gomez will receive $65,291 for his role in exposing the company’s shortcomings.
Special Agent-in-Charge Jason Sargenski of the Defense Criminal Investigative Service stated that protecting national security means ensuring data is secure from increasingly sophisticated cyber threats. The case, officially titled United States ex rel. Gomez v. Swiss Automation Inc., No. 1:22-cv-4328, involved collaboration between various Justice Department and military branches, with Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Kathryn Kelly contributing to the resolution.
This developing situation serves as a wake-up call for other contractors in the defense industry to reassess their cybersecurity frameworks. Firms are urged to comply fully with federal guidelines to avoid similar legal issues and protect crucial national security interests.
With cyber threats on the rise, the need for stringent cybersecurity is more urgent than ever. Stakeholders in the defense sector should stay informed on these developments and ensure they are prepared to meet evolving security requirements.
