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May 16, 2016

Montgomery County company agrees to give up 58-foot yacht in settlement with United States

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05162016_material_sciences_corp_GM Google/StreetView

Material Sciences Corporation is headquartered in the Prudential Business Campus in Horsham, Montgomery County.

A Montgomery County company will pay $219,909 to resolve allegations that it billed federal agencies to cover depreciation and other expenses associated with the 58-foot-long yacht it called its Mississippi office.

Federal prosecutors had contended that Materials Sciences Corporation, a government contractor headquartered in Horsham, had between 2006 and 2015, incorporated yacht-related expenses into its contract billing, primarily with the U.S. Navy.

The government contended that the expenses related to the yacht, a Hatteras Yacht Fisherman, were unreasonable and, as a result, not allowed.

Under the terms of the settlement, announced Monday by United States Attorney Zane David Memeger, Materials Sciences Corporation agreed not to use the yacht for any purpose and to dispose of the vessel within a specified period of time. As part of this settlement, the contractor did not admit to liability or wrongdoing, the U.S. Attorney's Office said.

According to the company's website, Materials Sciences Corporation provides engineering services to the composite materials industry.

This investigation was led by the United States Naval Criminal Investigative Service and the United States Department of Defense Criminal Investigative Service. The case was handled by Assistant United States Attorneys Michael S. Macko and Virginia Powel.