A settlement has been reached to resolve False Claims Act allegations against Inchcape Shipping Services.
The allegations arose from a lawsuit that claimed Inchcape Shipping Services knowingly overbilled the U.S. Navy under contracts for ship husbanding services.
Inchcape Shipping Services, provides 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. Inchcape Shipping Services provides ships with food and other subsistence items, waste removal, telephone services, ship-to-shore transportation, force protection services and local transportation.
According to the government, allegedly from 2005 to 2014, Inchcape Shipping Services 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.
“We trust contractors supporting our warfighters to act with the utmost integrity and expect them to comply with their obligations to bill the government as called for by their contracts,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “This settlement reflects our Office’s strong commitment to holding accountable those who violate these fundamental principles, no matter where they may be located.”
Reportedly, the whistleblower lawsuit was brought in 2010 under the False Claims Act by three former employees of Inchcape who alleged Inchcape conspired with subsidiaries and vendors to gouge the Navy whenever and wherever possible, triggering a management overhaul in 2015.
The whistleblowers will receive $4.4 million, plus $1.25 million in attorney fees as part of the settlement.
