Bering Straits Native Corp. subsidiary settles whistleblower lawsuit

An Alaska Native corporation's subsidiary has paid $2 million in damages to settle a whistleblower lawsuit that alleged violations of the False Claims Act.

Bering Straits Technical Services and its parent company, Bering Straits Native Corp., did not admit liability as part of the payment to the Southern District of Texas.

A whistleblower suit filed in 2012 alleged that the BSTS and BSNC caused false claims to be submitted to Department of Defense and/or the Defense Logistics Agency for maintenance facility services provided at the Red River Army Depot in Texas, according to a release from the DOJ.

"Specifically," the DOJ said, "the whistleblower alleged that beginning in September 2010, BSTS and BSNC submitted false preventative maintenance reports for maintenance that was not performed and false repair work orders, thereby overcharging the government."

The suit also alleged that BSTS and BSNC employees were coerced to "make up hours after the fact with no relation to time actually spent on maintenance," and that employees "were directed to repair equipment that no longer existed or was no longer in service and compelled to claim maintenance hours and supply costs for work that was not performed."

The two companies resolved the case "in order to avoid the costs of further litigation," according to a press release from BSTS. Both continue to deny the allegations.

Matt Ganley, vice president of media and external affairs at BSNC, said in an email that the corporation is unable to discuss the case.

The settlement, the result of a joint investigation by several federal agencies, was finalized April 26.

Annie Zak

Annie Zak was a business reporter for the ADN between 2015 and 2019.

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