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COLUMBIA, S.C. (AP) -- A South Carolina defense contractor has agreed to pay the U.S. government more than $1 million to resolve fraud allegations related to a contract with the Defense Department.

U.S. Attorney Bill Nettles said Wednesday the Defense Department paid nearly $435,000 to Columbia-based FN Manufacturing LLC to mentor minority-owned companies. But the government says FN never provided some of the mentoring and contracted out some of the services, an action that violated the company's contract.

FN is a subsidiary of FN Herstal of Belgium. The company makes the popular M-16 rifle, which is carried by almost every soldier.

A message left with company officials Wednesday was not immediately returned.

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