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North Florida Shipyards Settles FCA Allegations

November 6, 2014

Thanks to a False Claims Act (FCA) lawsuit, filed under the qui tam provisions of the Act by Robert Hallstein and Earle Yerger, North Florida Shipyards and its president, Matt Self, have agreed to pay the United States $1 million to resolve allegations that they violated the FCA by creating a front company, Ind-Mar Services Inc., in order to win a Coast Guard contract designated for businesses owned by disabled veterans.  According to an article on News4JAX.com, it is alleged that North Florida Shipyards created In-Mar Services Inc. as a contracting vehicle.  North Florida Shipyards performed all of the work itself and received all profits.

“Special programs to assist disabled veterans are an important part of the SBA’s business development initiative,” said A. Lee Bentley III, U.S. Attorney for the Middle District of Florida.  “False Claims such as this undermine the integrity of this vital program and, where found, will be vigorously pursued by our Office.”

To report fraud, please contact Frohsin & Barger.

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