The Columbian | Serving Clark County, Washington

The U.S. Department of Justice announced Thursday it reached a settlement agreement with Camas-based Furuno U.S.A. Inc. over the purchase of electronic navigation equipment by the U.S. Coast Guard, U.S. Navy and the General Services Administration.

At issue is Furuno’s sale to the government of navigation equipment manufactured in China. Under the Trade Agreements Act, the equipment the government purchased from Furuno should not have been made in China, according to a news release from the Department of Justice.

Under the agreement, Furuno will pay $695,063 to the United States. Of that amount, $159,864 will be paid to the person who triggered the investigation. In addition to the settlement, Furuno will pay $95,000 in attorney fees and costs to the party who filed the lawsuit alleging violation of the Trade Agreements Act.

Under the terms of the settlement, Furuno admitted no wrongdoing. Jim Atteridge, president of the company, a subsidiary of the global Japanese company Furuno, said Thursday that a “lack of controls” led to Chinese-made equipment being shipped to the U.S. government. Atteridge said his company still does business with the government, and recently secured a multimillion dollar contract to supply new radar sets to the Coast Guard.

In 2007, a lawsuit was filed under the False Claims Act alleging Furuno U.S.A. provided electronic equipment to the U.S. government in violation of the Trade Agreements Act. The False Claims Act allows private citizens to file lawsuits against federal contractors claiming fraud against the government.

That 2007 lawsuit triggered the government’s investigation of Furuno. Harold Malkin, deputy civil chief for the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office, said the federal government has prosecuted similar cases for as much as $75 million in civil damages.

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