Bollinger Shipyard LLC, a company based in Lockport, Louisiana, has agreed to pay $1,025,000 to settle allegations that it violated the False Claims Act. The allegations involve billing the U.S. Coast Guard for labor provided by workers who were not eligible to work in the United States.
The company manufactures ships for the United States, including the Coast Guard’s Fast Response Cutter (FRC). The United States alleged that from 2015 to 2020, Bollinger knowingly billed the Coast Guard for labor prohibited under FRC contracts. It was claimed that Bollinger was contractually required to confirm its employees' eligibility to work in the United States but failed to comply with this requirement. As a result, several ineligible employees worked on the contract, and Bollinger billed and received payment from the Coast Guard for their labor.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” stated Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”
U.S. Attorney Duane A. Evans for the Eastern District of Louisiana commented on the resolution: “Companies that conduct business with the United States are required to do so in a legitimate manner. 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.”
Inspector General Joseph V. Cuffari Ph.D., of DHS emphasized accountability: “Today’s settlement sends a clear message that contractors providing services to DHS programs will be held accountable for breaking the law.” He added that DHS OIG and law enforcement partners prioritize protecting national security from such schemes.
Assistant Director William Hicks of CGIS reiterated their commitment: “The Coast Guard Investigative Service (CGIS) is committed to continually working with all our law enforcement partners to protect and secure taxpayer funds and aggressively act to fully investigate allegations of false claims involving the Coast Guard.”
Senior Trial Counsel Art J. Coulter from the Civil Division’s Commercial Litigation Branch, Fraud Section, along with Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled this matter. DHS OIG and CGIS assisted in investigating these claims.
It should be noted that these resolved claims are allegations only; there has been no determination of liability.