The Builder of The LCS Montgomery Faces Charges

LCS Montgomery

Source: gCaptain.com

"The scheme, which ran from 2013 to 2016, involved artificially suppressing an accounting metric known as “estimate at completion” (EAC) for multiple Littoral Combat Ships being built for the U.S. Navy. The manipulation falsely overstated Austal USA’s profitability and Austal Limited’s earnings in public financial statements.

“Austal USA, a shipbuilder for the U.S. military, 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,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri.

"Under the plea agreement, Austal USA will pay a $24 million criminal fine and up to $24 million in restitution to Austal Limited shareholders. The company will also retain an independent compliance monitor for three years and serve three years of probation.