Government Contractor to Pay Over $4 Million to Settle Claims of Employing Unauthorized Workers

Federal authorities allege Bayonne Drydock used subcontractors to hire unauthorized, undocumented immigrants for work on Navy ships

A Bayonne-based government contractor has agreed to pay more than $4 million to resolve allegations that it knowingly employed unauthorized, undocumented immigrants on federal contracts involving U.S. Navy ships.

Bayonne Drydock and Repair Corporation will pay $4,043,810.56 to settle claims brought under the False Claims Act, stemming from alleged violations that occurred between May 2017 and December 2020. According to federal authorities, the company used multiple subcontractors—reportedly owned or controlled by Bayonne Drydock’s own Risk Manager—to carry out work on government contracts. These subcontractors, in turn, were alleged to have employed individuals who were not authorized to work in the United States.

Despite being notified that one of the subcontractors was using unauthorized labor, the company’s Risk Manager allegedly continued to facilitate similar hiring practices. That same Risk Manager later pleaded guilty to a federal criminal charge of knowingly hiring and continuing to employ unauthorized, undocumented immigrants.

The settlement concludes allegations that approximately 52 unauthorized, undocumented immigrants were employed through this arrangement to perform work aboard U.S. Navy vessels. While Bayonne Drydock has not admitted liability, the payment settles the civil allegations under the False Claims Act.

The investigation was led by the U.S. Department of Homeland Security, Homeland Security Investigations (Newark Field Office), and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (Northeast Field Office).

The case was prosecuted by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud and Opioids Enforcement Unit in Newark. Acting U.S. Attorney Habba thanked all involved agencies for their role in the investigation.

No further criminal charges against the company were announced as part of the settlement.