Defense Contractor to Pay $4.4M for False Claims Violations

The company faced accusations of millions in double billing.

The Department of Justice announced that Navmar Applied Sciences Corporation, an engineering and technical services provider, will pay $4.4 million to settle allegations of False Claims Act violations.

Between 2010 and 2012, the Department of the Navy granted contracts to Navmar related to the supply of enhanced intelligence, surveillance and reconnaissance systems, hardware, maintenance technical support services and the development and deployment of various advanced sensors and unmanned aerial systems. 

According to the DOJ release, Navmar was accused of submitting duplicate bills and reallocating expenses under these Department of the Navy contracts. 

It is alleged that Navmar intentionally billed specific material and labor costs on one Navy contract and then billed the same costs on a separate contract, resulting in double payments for identical costs.

The U.S. also alleged that Navmar violated the Federal Acquisition Regulation by purposefully transferring material costs from certain contracts to others, allowing Navmar to recover costs it wouldn't have otherwise received.

Navmar has submitted legally binding financial disclosures, along with supporting documents, to the U.S. If the U.S. discovers any assets in which NASC had any form of interest, which were not revealed in the financial disclosures, or if it becomes aware of any untrue statements or misrepresentation, the U.S. can void the agreement.

This could result in the reinstatement of legal action or new lawsuits. Alternatively, the U.S. could collect the entire settlement amount plus 100% of the net value of Navmar's previously undisclosed assets. 

Navmar has 60 months to pay the settlement amount plus any accumulated interest.

More in Video