More Contractor Fraud for Navy, Coast Guard

The Justice Department has filed a formal complaint against Inchcape Shipping Services (ISS), claiming that the company inflated invoices and double billed for their sewage removal service, as well as engaging in kickbacks, and "improper monetary arrangements" with the Navy officials.

This new complaint comes relatively shortly after the owner and CEO of Glenn Defense Marine Asia, Leonard Glenn Francis, pled guilty to corruption. Francis was involved in a scandal that steered Navy ships to ports with lax oversight, so he could overcharge the Navy for services rendered. In order to draw ships to the ports, Francis bribed senior Navy officers with cash, concert tickets, prostitutes, and fancy hotels.

According to Stripes.com, ISS came under fire when whistleblowers, including three former executives - one who is a former Naval Reserve intelligence officer, and another who is a former FBI agent - reported that Akbar Khan, Inchcape’s former regional director in Southwest Asia and Africa was routinely training employees to overcharge Navy and Coast Guard ships by 15-20%, and the company would pocket the difference. An audit found that ISS offices in Dubai and Bahrain alone overcharged the Navy by more than $5 million from 2005 to 2008.

A statement from Inchcape denies the allegations, stating:

"ISS wholly refutes these historic allegations and disagrees that there has been wrong-doing...The company sees no basis for the complaint and objects to the way the company has been characterized … ISS will cooperate fully with the U.S. authorities and looks forward to presenting the full case during trial, where it will vigorously defend its good name.”