Bollinger Shipyard LLC, based in Lockport, Louisiana, has agreed to pay a settlement of $1,025,000 to resolve allegations that it violated the False Claims Act.

The company, which manufactures ships for the U.S. government, including the Coast Guard’s Fast Response Cutter (FRC), was accused of submitting false invoices to the U.S. Coast Guard for labor provided by workers who were not authorized to work in the United States.

The Allegations

From 2015 to 2020, Bollinger allegedly billed the Coast Guard for labor that was prohibited under the FRC contracts.

According to the U.S. government, Bollinger was contractually required to ensure that its employees were eligible to work in the U.S.

However, the company failed to comply with this requirement, allowing ineligible workers to be employed on the contract. The U.S. further claims that Bollinger knowingly billed the Coast Guard for the work performed by these ineligible workers and received payments for those services.

Statements from Officials

Brian M. Boynton, Principal Deputy Assistant Attorney General and head of the Justice Department’s Civil Division, emphasized the importance of contractors meeting their contractual obligations for the safety and operational readiness of the nation’s fleet.

“We will continue to hold accountable those who knowingly disregard their contractual obligations,” he said.

Duane A. Evans, U.S. Attorney for the Eastern District of Louisiana, remarked that the resolution of the case demonstrates the federal commitment to addressing fraud, waste, and abuse.

“Companies that conduct business with the United States are required to do so in a legitimate manner,” Evans stated.

Inspector General Joseph V. Cuffari of the Department of Homeland Security (DHS) warned that contractors violating the law would be held accountable, with DHS OIG and its partners prioritizing national security and fraud prevention.

Similarly, the Coast Guard Investigative Service (CGIS), through Assistant Director William Hicks, reaffirmed its commitment to investigating false claims involving the Coast Guard.

The Settlement Details

This settlement resolves allegations that Bollinger knowingly violated the False Claims Act, but it is important to note that the claims are allegations only, with no determination of liability made as part of the settlement.

The U.S. Attorney’s Office, along with officials from the DHS OIG and CGIS, played key roles in the investigation.

Conclusion

The settlement represents a significant step in holding contractors accountable for improper practices and ensuring that federal funds are used appropriately.

The Justice Department, along with other federal partners, continues to remain vigilant in addressing such issues to protect taxpayer interests.

This article was published on TDPel Media. Thanks for reading!

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