The federal government today announced a settlement in the case against a Louisiana ship builder accused of using illegal immigrants to help build Coast Guard vessels.
"Bollinger Shipyard LLC (Bollinger), a Lockport, Louisiana, based company, has agreed to pay $1,025,000 to resolve allegations that it violated the False Claims Act by knowingly billing the U.S. Coast Guard for labor provided by workers who were not eligible to work in the United States," Public Information Officer Shane Jones said in a news release from the office of U.S. Attorney Duane Evans for the Eastern District of Louisiana.
He says that Bollinger was contractually required to confirm that its employees were eligible to work in the United States while manufacturing ships for the United States, including the Coast Guard’s Fast Response Cutter.
"The United States alleged that, from 2015-2020, Bollinger knowingly billed the Coast Guard for labor prohibited under the FRC contracts. Specifically, the United States alleged that Bollinger was contractually required to confirm that its employees were eligible to work in the United States. The United States further alleges that Bollinger failed to comply with this requirement and, as a result, several ineligible employees worked on the contract. Further, the United States alleged that Bollinger billed the Coast Guard for the labor provided by the ineligible employees and received payment for those bills."
Bollinger did not admit any guilt or liability in agreeing to the settlement.
The news release says that the claims resolved by the settlement are allegations only, and there has been no determination of liability.
However, leaders say it sends a strong message.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”
U.S. Attorney Duane Evans for the Eastern District of Louisiana said, “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.”