SC defense contractor pays $1M to resolve dispute
Wed, 04 Aug 2010 16:27:15 GMT —
A South Carolina defense contractor has agreed to pay the U.S. government more than $1 million to resolve fraud allegations related to a contract with the Defense Department.
U.S. Attorney Bill Nettles said Wednesday the Defense Department paid nearly $435,000 to Columbia-based FN Manufacturing LLC to mentor minority-owned companies. But the government says FN never provided some of the mentoring and contracted out some of the services, an action that violated the company's contract.
FN is a subsidiary of FN Herstal of Belgium. The company makes the popular M-16 rifle, which is carried by almost every soldier.
A message left with company officials Wednesday was not immediately returned.