The U.S. Attorney’s Office for the District of Hawaii announced Tuesday that Confluence Corp., doing business as Regal Service Company (“Regal”), a Hawaii-based Department of the Navy contractor, has agreed to pay $300,000 to settle allegations of False Claims Act violations.
The department alleged that Regal knowingly submitted false payment claims for work performed by unqualified welders on the USS Chung Hoon, USS John Paul Jones, and USS William P. Lawrence at the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility between January 2020 and October 2021.
“Submitting false claims for work performed by unqualified welders harms operational readiness and endangers warfighter safety,” said Special Agent in Charge Greg Gross, of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office, in a statement.
“NCIS appreciates our investigative partners for their continued efforts to help protect the Department of the Navy from threats posed by such fraud.”
The department alleged that, following an initial review of Regal’s contract work, the Navy determined that Regal employed welders who lacked the necessary certifications to complete the assigned tasks.