Nassau County Aerospace And Defense Contractor Repays Feds $2.6M

WESTBURY, NY — An aerospace and defense contractor based in Westbury has agreed to pay back $2.6 million that it accidentally overcharged the government and its contractors, authorities announced Wednesday.

Arkwin Industries, which makes hydraulic and fuel system components for civil and military planes, helicopters, spacecrafts, turbine engines and more, self-disclosed that it overbilled the government, federal prosecutors said in a news release.

"This resolution demonstrates how government contractors and suppliers should act when they discover overbilling – Arkwin notified the authorities, investigated the error, reported its findings to the United States and ultimately took responsibility for its mistakes," said U.S. Attorney Richard Donoghue. “"hen a government contractor self-discloses billing errors and cooperates in the government’s investigation, our Office will work with them to arrive at a fair and just resolution."

Arkwin acted as both a prime contractor and a subcontractor to the Defense Department, Air Force and Navy. The error was found in its accounting systems. Worker hours were counted twice as they inspected products. Arkwin notified the government and launched an internal investigation with outside counsel and a forensic accounting team. The company then reported its findings to the federal government, after which federal prosecutors and investigators concluded the overcharging was accidental, rather than deliberate.

The $2.6 million settlement represents the total of potential overbilling, with interest, authoriites said.

"Arkwin's cooperation in this matter was an important part of the successful and equitable resolution of this matter," said Leigh-Alistair Barzey, a special agent with the defense criminal investigative service. "