TVA contractor Bartlett Holdings, Inc., doing business as BHI Energy/Sun Technical Services, has been found guilty of violating the False Claims Act. The Knoxville, Tennessee-based company received $2.8 million in settlement fees.
The United States, on behalf of the Tennessee Valley Authority (TVA), reached a settlement with Bartlett Holdings, Inc. on April 22, 2016. The settlement stems from allegations that the company knowingly concealed or improperly avoided an obligation to refund overpayments received from TVA for work performed on the Watts Bar Nuclear Plant Unit 2 project.
Bartlett Holdings, Inc. entered into a subcontract with Bechtel Power Corporation, TVA’s engineering, procurement and construction contractor on the Watts Bar Unit 2 project, in January 2008. The subcontract provided for Bartlett to be reimbursed its actual costs for wages and related expenses, including payroll taxes and insurance incurred for employees working on the project.
However, the United States alleged that Bartlett received payments from TVA in excess of actual costs for payroll taxes and insurance and knowingly failed to timely identify, report and refund those overpayments to TVA as required under the subcontract.
“The issue of losing public funds through fraud, waste and abuse is all too well known,” said Acting U.S. Attorney Nancy Harr. “Since these losses usually result in increased costs to the public, parties that contract with the government or its agencies must be held to the terms of their contract. The U.S. Attorney’s office remains committed to recovering funds lost when a contractor departs from its contractual obligations,” added Harr.
The settlement resulted from a joint, comprehensive investigation conducted by the U.S. Attorney’s Office and the TVA Office of Inspector General (TVA-OIG). In January 2014, the TVA-OIG Audit Division initiated an audit of payments to Bartlett under its subcontract. The U.S. Attorney’s office and TVA-OIG Investigations Division subsequently joined the investigation following the filing of a qui tam or whistleblower complaint in May 2014.
Acting U.S. Attorney Harr commended the cooperative efforts of TVA Inspector General Richard Moore and his staff who participated in this complex investigation, including counsel to the Inspector General Charles Kandt, who was assigned to the matter as a Special Assistant U.S. Attorney (SAUSA). SAUSA Kandt and Assistant U.S. Attorney Rob McConkey represented the United States’ interests in this case.
Members of the public should be reminded that the claims settled by this agreement are allegations only and there has been no determination of liability.
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Key Facts
- State: Tennessee
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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