SCOTT AIR FORCE BASE, Ill. (AP) — Two shipping companies have paid nearly $3.7 million in civil penalties for invoice mistakes related to U.S. Department of Defense contracts in Afghanistan.
Federal prosecutors in the southern district of Illinois announced the fines against Farrell Lines and Damco USA on Thursday.
Acting U.S. Attorney Jim Porter says the two contractors were paid to move Defense Department cargo on behalf of the U.S. Transportation Command, which is based at Scott Air Force Base in St. Clair County.
Federal investigators determined that 563 weight tickets submitted by Farrell Lines to support billing invoices for individual cargo containers were created after the fact by employees of Damco, its subcontractor.
The case was settled without a lawsuit. Porter described the violation as one of poor record-keeping rather than willful misconduct.