
Maersk Unit, Subcontractor Fined for Falsifying Records Under U.S. Defense Contract
Farrell Lines, a subsidiary of the Maersk Line, Limited, and a subcontractor have paid about $3.66 million in civil fines for submitting “recreated” weight tickets in billing invoices.
According to the U.S. Justice Deptartment, under Farrell’s contract with the United States Transportation Command (USTRANSCOM), it was required to carry out worldwide door-to-door and/or port-to-port transportation providers to maneuver Department of Defense and different Government permitted cargo into and out of Afghanistan by way of a number of modes of transportation, together with air, sea, and land.
Farrell subcontracted its work on the contract to DAMCO USA, and the worth of the contract was based mostly virtually completely on the load of the shipments, and documented cargo weights, consisting of “weight tickets” issued by a licensed industrial scale for every cargo container, wanted to be included with billing invoices to the federal government.
USTRANSCOM discovered that 563 weight tickets, submitted by Farrell, to assist their billing invoices had been “recreated” by Damco workers and never genuine weight tickets.
The U.S. Department of Justice stated in a press release that each Farrell and Damco had been cooperative within the investigation.