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Hawaiian shipyard company settles False Claims Act suit

Marisco Ltd., an Oahu-based shipyard company, and Tanadgusix Corp., a native Alaskan tribal business, will pay the federal government $450,000 to settle claims that they defrauded the General Services Administration.

The two companies acquired a surplus Navy drydock under a program that allows Native American and Native Alaskan preferential rights to such equipment. The suit claimed that they were required to tow the drydock to Alaska and use it there to benefit natives of St. Paul Island. The companies contended that they intended to bring St. Paul Islanders to Hawaii to work.

An additional $800,000 will be paid to the government if $4 million earmarked as compensation to TDK in the federal budget is actually appropriated.

The Honolulu Star Bulletin and the Honolulu Advertiser ran February 4, 2006 stories on the developments.

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