- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-08-27T21:40:00
The U.S.-based subsidiary of Australian defense contractor Austal will pay $48.8 million in fines and restitution to settle allegations that it committed accounting and securities fraud, misled federal auditors, and violated the False Claims Act.
The DOJ ordered Alabama-based Austal USA, which builds vessels for the U.S. Navy and Coast Guard, to pay a $24 million fine and $24 million in restitution, the agency said in a press release Tuesday. The company also agreed to a $24 million settlement with the Securities and Exchange Commission (SEC) to resolve allegations that its conduct also violated antifraud provisions of the Securities Exchange Act.
In a separate settlement, Austal will pay more than $811,000 to settle a claim by the DOJ that it invoiced for butterfly valves on five Navy vessels built by the firm in 2011 that did not meet military requirements.
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The Department of Justice joined a whistleblower lawsuit filed by two former Georgia Tech compliance officers who alleged that the institute violated the False Claims Act by knowingly failing to meet cybersecurity requirements in a Department of Defense contract.
Two subsidiaries of aerospace giant Lockheed Martin agreed to pay $70 million to settle allegations levied by the Department of Justice of overcharging the Navy for aircraft parts.
Three executives at the U.S. subsidiary of Australian defense contractor Austal Limited were charged with accounting fraud for allegedly participating in a three-year scheme to lower cost estimates and prematurely book revenue.
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Cannabis hedge fund Navy Capital Green Management agreed to pay $150,000 to settle charges levied by the Securirties and Exchange Commission that the firm misled investors about its AML/CFT policies and allowed a sanctioned Russian oligarch to invest.
