Norfolk government contractor settles fraud allegations with $142,500 payout

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A Norfolk-based government contractor will pay $142,500 to settle civil fraud allegations that employees overcharged the United States Navy for labor.

The USS Ashland leaves White Beach Naval Facility in Okinawa Japan on July 6. (Mass Communication Specialist 2nd Class Sarah Villegas)
The USS Ashland leaves White Beach Naval Facility in Okinawa, Japan on July 6. (Mass Communication Specialist 2nd Class Sarah Villegas)

Fairbanks Morse Engine, located on the 900 block of Scott Street, was accused of overcharging the Navy for engine repairs on the USS Ashland, a Whidbey Island class ship, according to a Thursday news release from the Department of Justice.

The company had two subcontracts for work on the Ashland, one that was fixed price and the other that was based on time and materials. Supervisor hours, which should have been included in the fixed-price subcontract, were charged to the time-and-materials subcontract, the release states.

Although the company took corrective actions to resolve the problem, including repaying money owed and disclosing the conduct to the Department of Defense Office of Inspector General, it also agreed to pay $142,500 to settle alleged False Claims Act violations, according to the release.

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Adrienne Mayfield is an award-winning, multi-media journalist hailing from Clermont, Fla. She moved to Lynchburg, Va. on a whim when she was 19, and worked her way to Hampton Roads in 2013. Adrienne is passionate about telling people stories via covering public safety and the judicial system. She isn’t afraid to take a heads-on approach to covering crime, including knocking on doors to get the details police aren’t sharing. Adrienne is a 2014 Old Dominion University graduate who still lives within walking distance of the college. You may see her cruising around Downtown Norfolk on her bike, enjoying a sandwich from Grilled Cheese Bistro or playing fetch with her dog, Greta, at the Colonial Place dog park.