By Mark Maurer

 

The Securities and Exchange Commission on Friday said it charged three executives at shipbuilder Austal USA LLC with running a fraudulent revenue recognition scheme that allowed its parent company to meet or surpass analysts' expectations.

The executives at the Mobile, Ala.-based company worked to artificially lower cost estimates by tens of millions of dollars to finish certain shipbuilding projects for the U.S. Navy between 2013 and 2016, the securities regulator said.

The executives, Craig Perciavalle, Joseph Runkel and William Adams, were aware that the company's shipbuilding costs were rising higher than planned, the SEC said.

The executives face undisclosed fines and officer and director bars.

Austal USA is a unit of Austal Ltd.

 

Write to Mark Maurer at mark.maurer@wsj.com

(END) Dow Jones Newswires

March 31, 2023 16:40 ET (20:40 GMT)

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