Illinois-based agency to receive $8.7M settlement

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EAST ST. LOUIS, IL (AP) – The federal government will receive $8.7 million in a civil settlement with a Danish shipping giant as the result of a fraud probe conducted by an agency headquartered at Scott Air Force Base.

U.S. Attorney Stephen R. Wigginton announced the agreement with Maersk, the world’s largest overseas cargo carrier, on Wednesday. An investigation launched by the United States Transportation Command, or Transcom, determined there were 277 instances of false claims for the shipment of cargo to U.S. military outposts in Afghanistan.

Wigginton said in a press release that even a small percentage of fraud can amount to a significant loss of funds in contracts of this magnitude. He said his office will not tolerate any fraudulent, false or unwarranted billings from world-wide contractors.

Maersk is based in Copenhagen, Denmark. The company had a contract with Transcom to move cargo for the Department of Defense.