US commissions latest Littoral Combat Ship, as Austal execs face fraud charges
USS Santa Barbara pictured ahead of its commissioning. (Photo: US DoD)
On April 1, the USN commissioned the latest Austal USA-built Independence-variant Littoral Combat Ship (LCS), USS Santa Barbara (LCS 32), shortly after a federal grand jury indictment charging three Alabama men with orchestrating an accounting fraud scheme at the shipbuilder.
According to court documents, the three men and their co-conspirators allegedly conspired to mislead shareholders and the public about Austal USA’s financial position.
In a press release, the Department of Justice (DoJ) said the defendants are alleged to have ‘artificially reduced and suppressed an accounting metric known as “estimate at completion” (EAC) in relation to multiple LCS ships that Austal USA was building for the US Navy'.
Suppression of the EACs allegedly falsely overstated the company’s reported earnings in public financial statements.
The EAC figures were allegedly manipulated in part by using ‘programme challenges’, or cost-savings goals, that were in
Already have an account? Log in
Want to keep reading this article?
Read this Article
Get access to this article with a Free Basic Account
- Original curated content, daily across air, land and naval domains
- 1 free story per week
- Personalised news alerts
- Daily and weekly newsletters
Unlimited Access
Access to all our premium news as a Premium News 365 Member. Corporate subscriptions available.
- Original curated content, daily across air, land and naval domains
- 14-day free trial (cancel at any time)
- Unlimited access to all published premium news
More from Naval Warfare
-
![Indo-Pacific-geared corvette design unveiled by Abu Dhabi Ship Building]()
Indo-Pacific-geared corvette design unveiled by Abu Dhabi Ship Building
At the Langkawi International Maritime and Aerospace Exhibition (LIMA 2023) event in Malaysia, Emirati shipbuilder Abu Dhabi Ship Building (ADSB) has unveiled a new 92m corvette design.
-
![Sweden buys new amphibious artillery platforms]()
Sweden buys new amphibious artillery platforms
The Swedish Defence Materiel Administration (FMV) has contracted Swede Ship Marine for eight naval artillery platforms for use by the country's amphibious forces.
-
![Austal nets US Navy T-AGOS surveillance ships contract]()
Austal nets US Navy T-AGOS surveillance ships contract
Austal USA has been awarded a contract worth up to $3.195 billion to build up to seven T-AGOS surveillance ships for the USN.
