Austal Founder Stands by Indicted Former President
During a recent visit to the Austal USA shipyard in Mobile, Austal Ltd. founder John Rothwell opened up about the former Austal USA president facing federal charges, calling him “a proud man” who did not personally benefit from the alleged wrongdoing. This level of transparency is rare for Austal, which has remained tight-lipped about the situation involving Craig Perciavalle and other former executives.
The investigation into fiscal irregularities in the early years of the Littoral Combat Ship program has had a lasting impact on the company. Austal USA started building the Independence-class LCS in 2006 and shifted to full series production after 2010. By 2013, costs were escalating, and Perciavalle and other top executives allegedly kept this information hidden from higher-ups at Austal Ltd. When the truth came out in 2016, Austal Ltd. faced unexpected losses, leading to an investigation by the Australian Securities and Exchange Commission.
Austal Ltd. settled the Australian investigation in 2022 with a civil settlement and a $650,000 (Australian) penalty. On the U.S. side, federal agents raided Austal USA’s offices in January 2019. Soon after, a $24 million settlement was announced between Austal USA and the Department of Justice.
In the midst of these events, Perciavalle resigned abruptly in February 2021. By March 2023, he and two other executives were charged with conspiracy to commit wire fraud, wire fraud, and wire fraud affecting a financial institution. Despite entering pleas of not guilty, they are pushing for a dismissal of the indictment, arguing that it exceeds the statute of limitations. If the case goes to trial, it likely won’t happen before the second half of 2025.
During Rothwell’s visit, he expressed some confusion about the joint prosecution by Australian and U.S. authorities. While acknowledging the damage and worry caused by the situation, he emphasized that Perciavalle did not personally gain from the mistakes made. Rothwell portrayed Perciavalle as a businessman who aimed to overcome early setbacks in the LCS program and achieve the goals he had set for himself.
As this story went to press, no comment had been received from Perciavalle’s attorneys. The situation continues to unfold, with Rothwell and others navigating the challenges and consequences of the past actions.
