United States Attorney Clare E. Connors announced a settlement with Confluence Corp., operating as Regal Service Company, over allegations of false claims under the False Claims Act. The Hawaii-based corporation, contracted by the Department of the Navy, will pay $300,000 to resolve accusations that it knowingly submitted false claims for work performed by unqualified welders on three naval vessels at Pearl Harbor between January 2020 and October 2021.
The allegations stem from a review conducted by the Navy which revealed that Regal employed welders who lacked necessary certifications. A comprehensive review confirmed both the deficiency in qualifications and the quality of welds. It was also alleged that Regal provided falsified documents to suggest compliance with certification requirements.
The settlement includes $150,000 in restitution to cover costs incurred by addressing faulty welds. Clare E. Connors emphasized the seriousness of such actions: “When anyone – an individual or corporation – does business with the United States of America, the falsification of documents and other false representations will not be tolerated.”
Special Agent Greg Gross from NCIS noted, “Submitting false claims for work performed by unqualified welders harms operational readiness and endangers warfighter safety.” Similarly, Stanley A. Newell from DCIS highlighted the importance of fulfilling contractual obligations due to their impact on military readiness and personnel safety.
The investigation was conducted by DCIS’s Transnational Operations Field Office and NCIS’s Economic Crimes Field Office West. Assistant United States Attorney Sydney Spector managed the case proceedings.
It is important to note that these are allegations only, and no liability has been determined against Regal as part of this settlement.