Louisiana Shipbuilder Used Illegal Labor To Build Coast Guard Ships

A Louisiana shipbuilder agreed to pay more than $1 million to settle allegations that it billed the Coast Guard for "ineligible" workers, the Justice Department said Thursday.

Bollinger Shipyard, based in Lockport, was accused of "knowingly" billing the Coast Guard for labor after winning a contract to build the department's Fast Response Cutters from 2015 to 2020, the US Attorney for the Eastern District of Louisiana said.

The feds said Bollinger failed to comply with requirements in the contract that its employees were eligible to work in the United States.

"Bollinger billed the Coast Guard for the labor provided by the ineligible employees and received payment for those bills" in violation of the False Claims Act.

"It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements," Principal Deputy Assistant Attorney General Brian M. Boynton said. "We will continue to hold accountable those who knowingly disregard their contractual obligations."