A New Jersey shipping company based out of Edison, New Jersey has agreed to pay $1.89 million to settle allegations that it overbilled the United States for freight services that were never rendered.
U.S. Attorney Philip R. Sellinger today said Blue Water Shipping U.S. Inc. was under contract with the United States to bill for freight forwarding services related to foreign military sales has agreed to paying the government to clear the allegations.
In the settlement announced today, Blue Water Shipping admits that an employee of the company, who has since been terminated, created a fake company to bill for freight services that were never actually performed which were ultimately reimbursed by the United States.
Additionally, the settlement resolves allegations that Blue Water Shipping charged unallowable markups to the United States for inland transportation and ocean and air freight imports and exports. To resolve the investigations into improper billings, Blue Water Shipping has agreed to pay $1.89 million.
In conjunction with the investigation, Blue Water Shipping voluntarily disclosed facts to the investigators and cooperated with the investigation and prosecution of the former employee, Sellinger said.