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Press Release

W International Companies Agree to Pay $10.5M to Settle False Claims Act Allegations for Overcharging the Air Force and the Navy for Weld Tables

Tuesday, March 17, 2026

Share For Immediate Release Office of Public Affairs The Justice Department today announced that W International LLC, W International SC LLC, Precision Metal Equipment Handling LLC, and Edward Walker (collectively, “Defendants”) 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.

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.”

“To meet global demands, the Navy must accelerate shipbuilding. However, contractors who overcharge betray the public's trust and undermine this critical mission,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS and our partners are committed to protecting taxpayer funds and ensuring every dollar is spent in accordance with the contract.”

“As the law enforcement arm of the Department of Defense’s Office of Inspector General, the Defense Criminal Investigative Service (DCIS) is steadfastly committed to protecting the integrity of DoD’s procurement process and holding contractors accountable,” said Christopher Dillard, Special Agent in Charge, DCIS Mid-Atlantic Field Office. “Fraud on DoD contracts diverts critical taxpayer resources away from our warfighters. DCIS will continue to work closely with our law enforcement partners to investigate those who seek to exploit the system for personal gain.”

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 allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act under which private citizens can sue on behalf of the government and share in any recovery. The settlement in this case 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 Department of Justice’s 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 matter was handled by Senior Trial Attorney Greg Pearson of the Civil Division and Assistant U.S. Attorney James Leventis for the District of South Carolina.

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.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

Updated March 17, 2026 Topic False Claims Act Components Civil Division USAO - South Carolina Press Release Number: 26-259

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