Materials Sciences Corporation, a government contractor headquartered in Horsham, Pennsylvania, agreed to pay the United States $219,909 to resolve allegations that it unreasonably billed federal agencies to cover depreciation and other expenses associated with a 58-foot Hatteras Yacht Fisherman.
The DOJ alleged that between 2006 and 2015, Materials Sciences Corporation described the yacht as its Mississippi office. The company incorporated yacht-related expenses into its indirect cost rate submissions to receive payment under government contracts, primarily with the United States Navy.
The government said the yacht-related costs were unreasonable and therefore unallowable.
As part of the settlement, Materials Sciences Corporation also agreed not to use the yacht for any purpose and to dispose of the vessel within a specified period of time, the DOJ said Monday.
The company didn’t admit liability or wrongdoing.
Richard L. Cassin is the publisher and editor of the FCPA Blog. He’ll be the keynote speaker at the FCPA Blog NYC Conference 2016.