Austal USA Executives Indicted for Accounting Fraud

Three former and current executives of Austal USA, including the former president, have been indicted on charges of fraud and conspiracy for allegedly manipulating the company's financial statements to make its signature littoral combat ship program appear more profitable. The Securities and Exchange Commission has also filed a lawsuit against the three, accusing them of overstating revenues and earnings to earn tens of thousands of dollars in bonuses. The charges carry a maximum penalty of 30 years in prison, and the defendants are expected to plead not guilty.