DCIS & FBI Raid Pascagoula — $187M USS Wasp Fraud, 1,400 Counterfeit Navy Parts Seized

DCIS and FBI seized 1,400 counterfeit Navy components from a Pascagoula machine shop billing $187M in USS Wasp refit fraud. A routine DCAA audit flag led investigators to a kickback network reaching two Naval Supply Activity officers in Norfolk, Virginia. Pascagoula, Mississippi, June 23, 2026 — how grade-303 steel passed as Navy-spec K-Monel onto an amphibious assault ship. In June 2026, the Pentagon announced a $740M service-life extension for the USS Wasp. Within 48 hours, an automated Defense Contract Audit Agency review flagged one secondary subcontractor — Coastal Naval Precision LLC — for billing at three times market rate and four times the required component volume. What DCIS found over the next five days: a parallel production line running counterfeit parts, a diverted K-Monel supply chain worth $4.6M in secondary sales, and three Cayman shell companies routing kickbacks to two active-duty officers with component acceptance authority. The full raid on June 23 secured 1,400 counterfeit units, stopped two loaded trailers ninety minutes from departure, and pulled every installed component from the Wasp's hull. USS Porter and USS Fort McHenry are now under inspection. A Zurich-based entity tied to a fourth unknown contract went dormant 48 hours after the raid. ⚠️ DISCLAIMER: This video is a dramatized documentary reconstruction. All scenes, dialogue, and character portrayals are fictional recreations produced for educational and entertainment purposes. Names, organizations, locations, and operational details have been fictionalized or composited. This content does not represent the official positions of the U.S. Marshals Service, DEA, ATF, Louisiana State Police, Kansas Bureau of Investigation, Carter County authorities, the State of Oklahoma, or any other federal, state, or local agency. No classified information was used in the production of this video. If you want more federal case reconstructions like this, subscribe to Federal Watch. We break down the overlooked records, small mistakes, and quiet decisions that turn into major federal operations. New episodes are coming soon.