Bollinger Shipyard LLC, based in Lockport, Louisiana, has agreed to pay $1,025,000 to settle allegations of violating 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 shipbuilding company is known for manufacturing vessels for the United States, including the Coast Guard’s Fast Response Cutter (FRC). According to the allegations from 2015-2020, Bollinger knowingly billed the Coast Guard for labor that was prohibited under their contracts. The United States claimed that Bollinger was contractually obligated to ensure its employees were eligible to work in the country but failed to do so. As a result, several ineligible employees worked on these contracts and Bollinger allegedly received payment for their labor.

Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the importance of contractors complying with contractual requirements for fleet safety and operational readiness: “It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements.” He further stated that accountability would be enforced against those who disregard obligations.

U.S. Attorney Duane A. Evans from the Eastern District of Louisiana highlighted the importance of legitimate business conduct with government entities: “Companies that conduct business with the United States are required to do so in a legitimate manner.” He also praised federal partners' collaboration and commitment to addressing fraud, waste, and abuse.

Inspector General Joseph V. Cuffari Ph.D., from DHS, noted: “Today’s settlement sends a clear message that contractors providing services to DHS programs will be held accountable for breaking the law.” He stressed ongoing efforts by DHS OIG and law enforcement partners to protect national security from such schemes.

Assistant Director William Hicks of CGIS expressed commitment towards safeguarding taxpayer funds through thorough investigations: “The Coast Guard Investigative Service (CGIS) is committed to continually working with all our law enforcement partners.”

The case was handled by 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 from Louisiana's Eastern District.

The investigation received assistance from DHS OIG and CGIS. It should be noted that these resolved claims are only allegations without any determination of liability having been made.