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The Justice Dept. on March 17 announced four defendants, including two affiliated fabrication firms and their chief executive, agreed to pay $10.5 million to resolve allegations that they overcharged the U.S. Air Force and U.S. Navy for welding equipment supplied under federal contracts, a relatively modest settlement compared with larger False Claims Act cases involving major defense contractors.
Prosecutors alleged the overcharges were tied to equipment supplied as part of a federally backed effort to refurbish and equip a large-scale welding facility in South Carolina.
W International LLC and Precision Metal Equipment Handling LLC, each based in Michigan; W International SC LLC, based in South Carolina; and Edward Walker, chief executive officer of W International LLC and W International SC LLC, were accused of knowingly submitting inflated claims for weld tables used in military applications. The settlement resolves allegations brought under the False Claims Act; the defendants did not admit liability.
Attempts by ENR to seek comment from the accused contractors were unsuccessful.
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