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Feds: LI-based contractor overbilled U.S. Department of Defense

Arkwin Industries Inc., which has contracts with the

Arkwin Industries Inc., which has contracts with the U.S. Department of Defense, counted the worker hours spent doing product inspections twice, according to federal prosecutors. Photo Credit: Shelby Knowles

A Westbury-based aerospace and defense contractor found it overbilled the government because of an accounting system error and will pay a $2.6 million settlement after disclosing the problem, the U.S. attorney’s office said Wednesday.

Arkwin Industries Inc., which has contracts with the U.S. Department of Defense, counted the worker hours spent doing product inspections twice, before telling the government about it and sharing the results of an internal investigation, according to federal prosecutors.

The company’s website says it designs, tests and manufactures precision hydraulic and fuel system components for civil and military fixed-wing aircraft, helicopters, spacecraft and turbine engines.

The U.S. attorney's office and other government agencies did a probe after getting Arkwin's findings, found that the company's overbilling was accidental and negotiated the $2.6 million settlement — the amount overcharged and interest, according to authorities.

"When 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," Eastern District of New York U.S. Attorney Richard Donoghue said in a statement.

No lawsuit resulted from the matter, which was resolved out of court, according to federal prosecutors.

Kristian Norheim, Arkwin’s sales and marketing director, declined to comment on the company’s behalf Wednesday.

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