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APL Ltd. settles U.S. false claims violation

APL Ltd. has agreed to pay the United States government $9.8 million to resolve allegations it violated the False Claims Act in regard to a contract to provide GPS tracking of ocean containers in Afghanistan.

   APL Ltd. has agreed to pay the U.S. government $9.8 million to resolve allegations that it violated the False Claims Act in regard to a contract to provide GPS tracking of ocean containers in Afghanistan, the U.S. Department of Justice said Tuesday.
   APL’s Department of Defense contract required it to affix a satellite tracking device to each container transported from Karachi, Pakistan, to U.S. military bases in Afghanistan. The U.S. government alleged APL billed the Defense Department for tracking services despite knowing that the tracking devices “completely or partially failed to transmit data, or were not affixed to shipping containers,” the Justice Department said.
   The government also claims APL attached a single satellite tracking device to two shipping containers despite being required to affix one device to every container.
   “We will continue to ensure that there are appropriate consequences for those who knowingly fail to live up to their bargain and misuse taxpayer funds,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, in a statement.
   “Thanks to the collaborative efforts of many U.S. law enforcement professionals, APL is today being held accountable for their actions,” added Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.
   The Justice Department said the claims resolved by this civil settlement are “allegations only; there has been no determination of liability.”

Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.