Edward Walker, False Claims Act Violations, Michigan 2023

Michigan-based companies W International LLC, W International SC LLC, Precision Metal Equipment Handling LLC, and Edward Walker have agreed to pay $10.5 million to resolve allegations under the False Claims Act that they knowingly overcharged the U.S. Air Force and the U.S. Navy for weld tables.

The Justice Department announced the settlement, stating that W International LLC, a Michigan company, and W International SC LLC, a South Carolina company, were both engaged in the business of industrial welding and metal fabrication. Edward Walker was the Chief Executive Officer of both companies. Precision Metal Equipment Handling LLC is a Michigan company that manufactured weld tables for W International SC LLC.

“Contractors and subcontractors are expected to charge no more than authorized under their contracts with the military,” said Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “We will continue to ensure the government gets the prices it bargained for on defense contracts.”

“Exploiting the procurement process for our military’s necessary materials unduly increases the burden on taxpayers,” said U.S. Attorney Bryan P. Stirling for the District of South Carolina. “We’ll continue to work with our partners to support our service members and protect our taxpayers.”

The allegations resolved by the settlement concern federal funds provided to W International SC to refurbish and equip a large-scale welding facility. As part of that effort, the United States alleges, the Defendants submitted or caused to be submitted claims for payment that overcharged for weld tables supplied for the facility. Funding for the project was provided through the Defense Production Act pursuant to a U.S. Air Force Technology Investment Agreement, and as Supplier Development Funds pursuant to a Navy prime contract with General Dynamics Electric Boat.

The settlement provides for the whistleblower, John Klausmeier, a former employee of W International SC LLC, to receive $1,863,750 as his share of the settlement. This case was handled by the Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of South Carolina; the Naval Criminal Investigative Service; the Defense Criminal Investigative Service; and the Defense Contract Audit Agency.

The lawsuit is captioned United States ex rel. Klausmeier v. W International, LLC, Civil Action number 22-cv-1774 in U.S. District Court for the District of South Carolina. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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