United States Attorney Clare E Connors | U.S. Department of Justice
Confluence Corp., operating as Regal Service Company, has agreed to a $300,000 settlement following allegations of violating the False Claims Act. The company was accused of submitting false claims for work performed by unqualified welders on three naval ships at Pearl Harbor Naval Shipyard between January 2020 and October 2021.
The United States alleged that an initial review revealed Regal used uncertified welders, which was confirmed in a full-scale review. It was further alleged that Regal falsified documents to make it appear the welders were certified.
The settlement includes $150,000 in restitution to cover costs incurred by the Navy due to faulty welds. Clare E. Connors, U.S. Attorney for the District of Hawaii, stated that falsification of documents will not be tolerated and emphasized accountability for failing government contracts.
Greg Gross from NCIS highlighted the risks posed by such false claims to operational readiness and warfighter safety. Stanley A. Newell from DCIS stressed the importance of contractors fulfilling their contractual obligations for military readiness and safety.
The False Claims Act allows for treble damages and civil penalties up to $27,894 per violation. The case was investigated by DCIS’s Transnational Operations Field Office and NCIS’s Economic Crimes Field Office West. Assistant U.S. Attorney Sydney Spector managed the case.
It is important to note that these claims are allegations only with no determination of liability against Regal.
