A major US government contractor has agreed to pay a whopping $377.5 million to settle allegations of procurement fraud. This is the largest settlement of its kind to date.
Booz Allen Hamilton is a government and military contractor focused on cyber and digital intelligence. This multi-billion dollar company was the employer of whistleblower Edward Snowden when he worked for the NSA.
Read more about False Claims Act: US company to pay $16 million to settle medical fraud claims
Major contractors were accused of charging government contracts and subcontracts for costs that should have been charged to commercial and international contracts. The alleged fraud occurred over a decade from 2011 to 2021.
The government claimed that Booz Allen added indirect costs from commercial and international contracts to unrelated government contracts, or that these costs were apportioned in “disproportionate amounts.”
The government also alleged that it did not disclose how Booz Allen accounted for costs incurred in its commercial and international operations.
The result, according to the Department of Justice (DoJ), is an indirect reimbursement for U.S. taxpayers for commercial activities that do not benefit the United States.
Matthew Graves, a U.S. attorney in the District of Columbia, said: “One of the largest procurement fraud settlements in history, this settlement marks America’s pursuit of even the most complex cases of alleged theft of taxpayer funds and some of the largest companies.”
“The Department of Justice is committed to eliminating all forms of fraud, waste and abuse in government programs, whether small or large, simple or complex.”
The whistleblower who uncovered the truth in this case is a former Booz Allen employee who is set to receive nearly $70 million as part of provisions under the False Claims Act.
The news comes just a week after the US healthcare technology vendor agreed to pay $31 million to settle allegations that it violated the False Claims Act and bribed customers to recommend its products.
