Austal USA, an Alabama-based shipbuilder for the Navy and the Coast Guard, will pay a $24 million fine to settle a Justice Department investigation into an accounting fraud case stemming from last year’s indictment of three company officials.
The company, a subsidiary of Australian shipbuilder and defense contractor Austal, also will pay $24 million restitution to its shareholders. Threat Status is tracking how the case may impact AUKUS, the joint U.S., U.K. and Australian project to create a cutting-edge fleet of nuclear-powered submarines aimed at countering China’s influence in the Indo-Pacific.
Austal USA engaged in a “years-long scheme to illegally inflate its profits on ships the company was building for the U.S. Navy, reporting false financial results to investors, lenders and its auditors,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said in a statement this week.