{"id":2332828,"date":"2024-08-28T17:32:45","date_gmt":"2024-08-28T21:32:45","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-navy-shipbuilder-agrees-to-pay-24-million-after-admitting-to-years-long-scheme\/"},"modified":"2024-08-28T17:38:27","modified_gmt":"2024-08-28T21:38:27","slug":"us-navy-shipbuilder-agrees-to-pay-24-million-after-admitting-to-years-long-scheme","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-navy-shipbuilder-agrees-to-pay-24-million-after-admitting-to-years-long-scheme\/","title":{"rendered":"US Navy Shipbuilder Agrees to Pay $24 Million After Admitting to &#8216;Years-Long Scheme&#8217;"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-navy-shipbuilder-agrees-to-pay-24-million-after-admitting-to-years-long-scheme%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2332828&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Austal USA, a shipbuilding subsidiary \u2064of Australia-based Austal Limited, has confessed to wrongdoing in an accounting fraud case. The company has\u2062 agreed to pay\u2063 a $24 million fine as part of a settlement with \u2064the U.S. Department of \u2064Justice. The investigation revealed that from \u20632013 to 2016,\u2062 Austal \u200bUSA engaged in a scheme \u2062to\u2063 mislead investors \u2063regarding its financial health by inflating profits and providing false financial results. Austal artificially lowered cost\u200c estimates \u2064while shipbuilding costs were \u200bon the rise, leading\u200b to inflated profitability figures\u2064 reported to authorities and the\u200c public.<\/p>\n<p>As part\u2063 of the settlement, Austal has \u200balso agreed to\u200b pay\u2062 an \u2063additional $24 million in \u2063restitution for losses incurred by investors and will implement an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dojs-new-enforcement-strategy-pushes-companies-to-own-up-to-crime\/\" title=\"DOJ\u2019s New Enforcement Strategy Pushes Companies to \u2018Own Up\u2019 to Crime\">independent compliance monitor<\/a> for \u200bthree \u200cyears. Three former executives of the company are\u2062 facing indictments related to the fraud. A sentencing\u2063 hearing is set for\u200d November 25, with the Justice\u200d Department suggesting a criminal penalty of $73 million, which was reduced due to the\u2063 company&#8217;s financial\u200b struggles.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> <script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><\/p>\n<p>Austal USA, an Alabama-based shipbuilder that makes vessels for the U.S. Navy, has admitted wrongdoing and agreed to pay a $24 million fine to settle an accounting fraud investigation, the U.S. Department of Justice announced Tuesday.<\/p>\n<p>From 2013 through July 2016, Austal USA conspired to mislead holders and investors about the company&rsquo;s financial condition, the department said. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-judge-orders-pge-to-explain-role-in-dixie-fly-fires\/\" title=\"Federal judge orders PG&amp;E to explain role in Dixie, Fly fires\">company pleaded guilty<\/a> to one count of securities fraud and one count of obstruction of a federal audit.<\/p>\n<p>Austal USA &ldquo;engaged in a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bill-gates-squirms-when-questioned-about-jeffrey-epstein\/\" title=\"Bill Gates Squirms When Questioned About Jeffrey Epstein\">years-long scheme<\/a> to illegally inflate its profits on ships the company was building for the <a href=\"https:\/\/www.westernjournal.com\/former-us-navy-four-star-admiral-arrested\/\" target=\"_blank\" rel=\"noopener\">U.S. Navy<\/a>, reporting false financial results to investors, lenders, and its auditors,&rdquo; Nicole M. Argentieri, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/facebook-oversight-board-member-joins-biden-doj\/\" title=\"Facebook Oversight Board Member Joins Biden DOJ\">principal deputy assistant attorney general<\/a> and head of the Justice Department&rsquo;s Criminal Division, said in a statement.<\/p>\n<p>Austal USA LLC is a subsidiary of Australia-based Austal Limited and builds littoral combat ships for the Navy that are designed to operate in shallow coastal waters.<\/p>\n<p>The Justice Department said Austal artificially lowered cost estimates, despite rising shipbuilding costs, to meet its revenue budget and projections. That had the impact of falsely overstating Austal USA&rsquo;s profitability on the ships and Austal Limited&rsquo;s earnings reported in its public financial statements.<\/p>\n<p>  <script> \t\t\t\tif( ! getCookie( 'ff_subbed' ) ) if( typeof FFADS.replace_ict !='undefined' ) if( FFADS.replace_ict ) eval( FFADS.replace_ict ); \t\t\t<\/script> <\/p>\n<p>Court documents show the company agreed to settle complaints by the Securities and Exchange Commission and the Justice Department. A sentencing hearing is scheduled for November 25th.<\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/department-justice-finally-admits-truth-hunter-biden-laptop-new-court-filing\/\" target=\"_blank\" rel=\"noopener\">The Justice Department<\/a> said the appropriate criminal penalty would be $73 million, but that was reduced because of Austal USA&rsquo;s inability to pay. In addition to the $24 million criminal fine, the company is also on the hook for $24 million in restitution for holder losses.<\/p>\n<p>Austal USA has also agreed to retain an independent compliance monitor for three years and implement a compliance and ethics program.<\/p>\n<p>Three former Austal USA executives were indicted last year on accounting fraud charges. They are awaiting trial.<\/p>\n<p style=\"font-style: italic;\">The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\">  <\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> <label>* Name<\/label> <br \/> <input type=\"text\" name=\"name\" required> <\/div>\n<div class=\"sc--field\"> <label>* <\/label> <br \/> <input type=\"text\" name=\"\" required> <\/div>\n<p> <label>* Message<\/label> <br \/> <textarea name=\"message\" required><\/textarea>  <\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> <input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\">  <\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> <script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script>  <\/div>\n<p>   <script>console.log(\"ad slot (BA1)\")<\/script> <\/p>\n<div class=\"ff-fancy-header-container\">  <\/div>\n<style> \t\t\t \t\t\t.insticator-unit.type-commenting{margin: 0 10px 25px 10px}@media screen and (max-width:1060px){#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{margin: 0 auto 25px auto !important;}}#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{height: 280px !important; width: 336px !important} \t\t<\/style>\n<div class=\"insticator-unit type-commenting\">\n<div class=\"insticator-ads\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-1\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-2\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-1\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-2\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<div class=\"insticator-ads additional\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-3\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-4\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-3\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-4\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Austal USA, a shipbuilder located in Alabama that produces vessels for the U.S. Navy, has acknowledged its misconduct and consented to pay a $24 million penalty to resolve an accounting fraud inquiry, as announced by the U.S. Department of Justice on Tuesday. Between 2013 and July 2016, Austal USA engaged in efforts to deceive stakeholders and investors regarding its financial status. The company pleaded guilty to one count of securities fraud and one count of obstructing a federal audit. According to Nicole M. Argentieri, principal deputy assistant attorney general and head of the Justice Department\u2019s Criminal Division, Austal USA participated in a prolonged scheme aimed at unlawfully inflating profits from ships being constructed for the Navy by providing misleading financial information to investors, lenders, and auditors.<\/p>\n<p>Austal USA LLC is a subsidiary of Australia-based Austal Limited and specializes in building littoral combat ships intended for operations in shallow coastal waters. The Justice Department indicated that Austal artificially reduced cost estimates despite increasing shipbuilding expenses to align with revenue targets and forecasts. This practice resulted in an inflated portrayal of both Austal USA&#8217;s profitability on these vessels and the earnings reported by Austal Limited in its public financial disclosures.<\/p>\n<p>Court records reveal that the company has agreed to settle allegations from both the Securities and Exchange Commission (SEC) and the Justice Department. A sentencing hearing is set for November 25th; while the Justice Department suggested an appropriate criminal penalty of $73 million, this amount was lowered due to Austal USA&#8217;s inability to pay it fully. In addition to paying $24 million as a criminal fine, the company must also provide $24 million in restitution for losses incurred by holders.<\/p>\n<p>Furthermore, Austal USA has committed to hiring an independent compliance monitor for three years while implementing a compliance and ethics program. Three former executives from Austal USA were indicted last year on charges related to accounting fraud are currently awaiting trial<\/p>\n","protected":false},"author":1,"featured_media":2332829,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/08\/9e0b8bc4275b42b7983ed397fdd8abf0-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[8773,39591,33647,23028,32466],"class_list":["post-2332828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-corruption","tag-defense-contracting","tag-legal-settlement","tag-shipbuilding","tag-us-navy"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/08\/9e0b8bc4275b42b7983ed397fdd8abf0-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2332828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2332828"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2332828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2332829"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2332828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2332828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2332828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}