(The Center Square) – A Louisiana-based ship builder agreed to pay $1 million to settle allegations that it knowingly billed the U.S. Coast Guard for work done by workers who were not eligible to work in the United States.
Bollinger Shipyard LLC will pay $1,025,000 to resolve allegations that it violated the False Claims Act by knowingly billing the Coast Guard for labor provided by workers who were not eligible to work in the U.S.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” Principal Deputy Assistant Attorney General Brian Boynton said. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”
Bollinger builds ships for the United States, including the Coast Guard’s Fast Response Cutter. The company has been designing, building and servicing ships for 75 years, including numerous federal contracts, according to the settlement agreement. The company has built 186 vessels for the Coast Guard, according to its website. The company’s motto is “Quality is remembered long after the price is forgotten.”
Federal prosecutors alleged that from 2015-2020 Bollinger knowingly billed the Coast Guard for labor prohibited under the FRC contracts. Specifically, prosecutors alleged that Bollinger was contractually required to confirm that its employees were eligible to work in the United States. They further alleged that Bollinger failed to comply with this requirement and, as a result, several ineligible employees worked on the contract.
“Companies that conduct business with the United States are required to do so in a legitimate manner,” said U.S. Attorney Duane Evans for the Eastern District of Louisiana. “The favorable resolution of these False Claims Act allegations illustrates the collaboration and commitment by our federal partners to use all available remedies to address signs of fraud, waste and abuse.”
Bollinger Shipyard did not immediately respond to a request for comment.
The DOJ noted that liability has not been determined, and the claims resolved by the settlement were merely allegations.
The company, based in Lockport, operates 11 shipyards throughout Louisiana and Mississippi. It builds vessels for the Coast Guard, Navy, and offshore supply vessels, barges and tugs.