UK-based marine services contractor Inchcape and some of its subsidiaries have agreed to pay $20,000,000 to resolve allegations that they violated the False Claims Act by knowingly overbilling the US Navy under contracts for ship husbanding services, the US Department of Justice announced.
As informed, Inchcape provided goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico.
The lawsuit alleged that from 2005 to 2014, Inchcape knowingly overbilled the Navy for these services by submitting invoices that overstated the quantity of goods and services provided, billing at rates in excess of applicable contract rates, and double-billing for some goods and services, according to US DoJ.
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff.
Under the act, a private citizen may bring suit on behalf of the US for false claims and share in any recovery. The government may intervene in the case, as it did here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it. As part of this resolution, the whistleblowers will receive approximately $4.4 million.
