WASHERN DC – In a major blow to corporate accountability, Booz Allen Hamilton Holding Corporation has agreed to pay the United States $377,453,150 to resolve allegations that it violated the False Claims Act by improperly billing commercial and international costs to its government contracts.
According to the government, Booz Allen, which is headquartered in McLean, Virginia, provides a range of management, consulting, and engineering services to the Government, as well as commercial and international customers.
Under government contracting rules, there must be a nexus between the costs charged to a government contract and the objective of the contract. Thus, a contractor may charge to a government contract costs directly related to that contract, as well as indirect costs that benefit multiple contracts including the government contract. A contractor may not charge costs to a government contract, however, that have no relationship to that contract. This prohibition prevents government contractors from using taxpayer funds to subsidize non-government related work.
The settlement announced today resolves allegations that from approximately 2011 to 2021, Booz Allen improperly charged costs to its government contracts and subcontracts that instead should have been billed to its commercial and international contracts. In particular, the government alleged that Booz Allen improperly allocated indirect costs associated with its commercial and international business to its government contracts and subcontracts that either had no relationship to those contracts and subcontracts or were allocated to those contracts and subcontracts in disproportionate amounts. The government further alleged that Booz Allen failed to disclose to the Government the methods by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen obtained reimbursement from the government for the costs of commercial activities that provided no benefit to the United States.
“This settlement, which is one of the largest procurement fraud settlements in history, demonstrates that the United States will pursue even the largest companies and the most complex matters where taxpayer funds are alleged to have been pilfered,” said U.S. Attorney for the District of Columbia Matthew M. Graves.
Defendant: Booz Allen Hamilton Holding Corporation
Criminal Charges: Violation of the False Claims Act
City and State: Washington DC
Date: N/A
Sentence/Ooutcome: Agreed to pay $377,453,150
Dollar Amounts: $377,453,150
Ms. Feinberg will receive $69,828,832 in connection with the settlement.
Related Federal Cases
- OANDA Corporation, Securities Fraud, District of Columbia 2020 · Virginia
- Dominion Resources, Inc., False Reporting, District of Columbia 2006 · District of Columbia
- Nicholas Loukas, Conspiracy to Make False Statements on Firearm Rec… · Maryland
- Khin Phoo Ngon, Tenancy Scam, District of Columbia 2021 · Massachusetts
- Thomas Columbian, Fentanyl Conspiracy, District of Columbia 2024 · Maryland
Key Facts
- State: Washington DC
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News