Timecard Scam Exposed at Hanford Nuclear Site

SEATTLE, WA – A shocking case of timecard fraud has been uncovered at the Hanford Nuclear Site in southeastern Washington, where eight former employees of CH2M Hill Hanford Group Inc. have pleaded guilty to felony charges. The scheme, which lasted from 1999 to 2008, involved hourly employees of CH2M Hill, a subsidiary of CH2M Hill Companies Ltd., a Colorado-based engineering and construction services company, regularly and substantially overstating the number of hours they worked.

CH2M Hill was a prime contractor responsible for the management and cleanup of over 170 underground storage tanks containing mixed radioactive and hazardous waste at the Department of Energy’s Hanford Nuclear Site. The complaint alleges that CH2M Hill management knowingly condoned this practice and submitted inflated claims to the Department of Energy that included the fraudulently claimed hours.

The lawsuit was originally filed under the False Claims Act by Carl Schroeder, a former employee of CH2M Hill. However, the United States has notified the court that it expects to file a motion to dismiss Mr. Schroeder from the action on the basis of his criminal conduct.

The False Claims Act authorizes private parties to sue on behalf of the United States and authorizes the government to intervene in such a suit and take over responsibility for litigating it. Although the act generally authorizes the whistleblower who initiated the suit to share in any recovery, it also bars recovery by any whistleblower who is convicted of criminal conduct for his role in the fraud.

The U.S. government has intervened in the lawsuit against CH2M Hill Hanford Group Inc. in the U.S. District Court for the Eastern District of Washington. The case is being handled by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Washington, with the assistance of the Department of Energy Office of Inspector General.

The claims asserted in this case are allegations only, and there has been no determination of liability. The U.S. ex rel. Schroeder v. CH2M Hill, 09-cv-5038 case is ongoing, and the court will continue to hear arguments and evidence presented by both sides.

The government’s intervention in this case sends a clear message that timecard scams and other forms of fraud will not be tolerated in the nuclear industry. The investigation and prosecution of this case highlights the importance of accountability and transparency in government contracting.