GOOSE CREEK, S.C. – A former Goose Creek-based defense contractor that once promised hundreds of jobs as part of a major Berkeley County investment has agreed to pay $10.5 million to settle federal allegations it overcharged the U.S. Air Force and Navy, according to the U.S. Department of Justice.
W International SC LLC, which operated out of the Charleston International Manufacturing Center at Bushy Park, along with related entities and its former CEO Edward Walker, was accused of submitting inflated claims for weld tables tied to military-funded projects.
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The company’s presence in Berkeley County dates back to a 2018 economic development announcement, when the South Carolina Department of Commerce announced W International’s plans for a $35.2 million investment and projected the creation of more than 600 jobs. The 451,000-square-foot facility was intended to support manufacturing and fabrication for industries including aerospace, defense, energy and automotive—particularly U.S. Navy platforms such as submarines and aircraft carriers.
Federal officials now allege that, as part of a project to refurbish and equip a large-scale welding facility, the company overcharged the government for weld tables. The work was funded through the Defense Production Act under an Air Force Technology Investment Agreement, as well as supplier development funds connected to a Navy contract with General Dynamics Electric Boat.
“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.”
Officials say the alleged actions placed unnecessary strain on taxpayer resources and undermined confidence in the military procurement process.
“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.”
The case was investigated by multiple federal agencies, including the Naval Criminal Investigative Service and the Defense Criminal Investigative Service.
The allegations stem from a whistleblower lawsuit filed under the False Claims Act by former employee John Klausmeier. Under the settlement, Klausmeier will receive approximately $1.86 million.
Federal officials emphasized that the agreement resolves allegations only, and there has been no determination of liability.
The case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of South Carolina, and several federal investigative partners.
In 2024, HII, the nation’s largest military shipbuilder, announced it had entered into an agreement to acquire substantially all assets of W International SC.
