July 17, 2006
NY Waterway in $1.2 million settlement
Port Imperial Ferry Corp., which does business as New York Waterway, is to pay about $1.2 million to settle a federal suit alleging that it defrauded the government for emergency ferry services following the Sept. 11, 2001 terrorist attacks.
The company will pay the government about $16,000 a month for seven years.
The suit, filed last year, accused ferry company of overcharging for emergency ferry service after the 2001 attacks by exaggerating its costs for items such as payroll and fuel.
It also alleged New York Waterway claimed $8.4 million in losses from the attacks though the company's records showed a $5.6 million profit in 2001, $3 million higher than the prior year.
According to a New York Newsday report, New York Waterway President Arthur E. Imperatore said it was "regrettable that [the company's 9/11 services] resulted in a billing dispute with the government."
"We strongly deny any and all allegations with respect to these billing issues," he is reported as saying.