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Westbury-based Arkwin Industries has agreed to pay a $2.6 million settlement to the United States after self-disclosing the overfilling to the government and its prime contractors.
U.S. Attorney Richard Donoghue said that Arkwin Industries designs, tests and manufactures precision hydraulic and fuel system components for civil and military fixed-wing aircraft, helicopters, spacecraft, turbine engines and other special applications.
Arkwin acts both as a prime contractor and as a subcontractor to the Department of Defense, the Department of the Air Force and the Department of the Navy.
Donoghue said that Arkwin detected an error in its accounting systems that had double-counted worker hours spent performing inspections of its products. Arkwin then self-disclosed the discovery to the United States, and undertook an internal investigation, reporting its findings to the United States.
“This resolution demonstrates how government contractors and suppliers should act when they discover overbilling – Arkwin notified the authorities, investigated the error, reported its findings to the United States and ultimately took responsibility for its mistakes,” the U.S. Attorney stated. “When a government contractor self-discloses billing errors and cooperates in the government’s investigation, our Office will work with them to arrive at a fair and just resolution.”
Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office added, “today’s settlement is the result of a joint effort to ensure that the U.S. Department of Defense expends only the necessary amount for the goods and services needed to supply our military. Arkwin’s cooperation in this matter was an important part of the successful and equitable resolution of this matter.“
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