Montco Company Must Pay US Government $200k For Yacht: US Attorney

HORSHAM, PA -- Materials Sciences Corporation, a government contractor headquartered in Horsham, has agreed to pay the United States $219,909 to resolve allegations that the company unreasonably billed federal agencies to cover depreciation and other expenses associated with a 58-foot-long Hatteras Yacht Fisherman, according to the US Attorney's Office.

Specifically, the United States contended that between 2006 and 2015, Materials Sciences Corporation described the yacht as the company’s Mississippi office and incorporated yacht-related expenses into the company’s indirect cost rate submissions to receive payment under government contracts, primarily with the United States Navy, according to the US Attorney.

The United States contended that the yacht-related costs were unreasonable and therefore unallowable, authorities said.

Materials Sciences Corporation also agreed not to use the yacht for any purpose and to dispose of the vessel within a specified period of time. The agreement therefore ensures that the company’s billing practice will not repeat itself in the future, the US Attorney said.

As part of this settlement, Materials Sciences Corporation did not admit liability or wrongdoing.