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Booz Allen to pay over $377 million to settle allegations of False Claims Act violations
The Department of Justice seal is seen before a news conference to announce an international ransomware enforcement action at the Department of Justice in Washington, Jan. 26, 2023. On Friday, July 21, The Associated Press reported on stories circulating online
By Brad Matthews - The Washington Times - Saturday, July 22, 2023
Consulting firm Booz Allen is paying $377,453,150 to settle allegations that it violated the False Claims Act with improper billing, the Justice Department announced Friday.
The McLean, Virginia, company provides consulting, managerial and engineering services to commercial and government clients. Under government contracting rules, costs charged to a contract by a firm such as Booz Allen must be related to the final aim of the contract. Conversely, firms are not allowed to charge unrelated costs to the government.
The U.S. government purported that from 2011 to 2021, Booz Allen allocated costs associated with its commercial and international work to its government contracts. Some of these allocations were entirely unrelated to the government work, while other allocations were for more money than was appropriate, according to the Justice Department.
Booz Allen was also accused of not disclosing its methodology for calculating the costs of its commercial and international work to the government.
“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,” U.S. Attorney for the District of Columbia Matthew Graves said in a statement.
The whistleblower and former Booz Allen employee that reported the alleged violations, Sarah Feinberg, will receive $69,828,832 of the settlement money under the provisions of the False Claims Act.
Ms. Feinberg said that “I hope this case will inspire more whistleblowers to hold corrupt individuals and corporations accountable,” in a statement released via the KaiserDillon law firm that represented her.
Booz Allen, meanwhile, contends it acted legally, but wanted to avoid a protracted legal fight.
“The company did not want to engage in what likely would have been a yearslong court fight with its largest client, the U.S. government, on an immensely complex matter,” a Booz Allen spokesperson explained.
Booz Allen has not been found legally liable, nor does the settlement constitute an admission of guilt. A parallel criminal investigation against the firm was dropped in 2021 with no charges, while a Securities and Exchange Commission investigation into the matter is ongoing, according to the New York Times.
By Brad Matthews - The Washington Times - Saturday, July 22, 2023
Consulting firm Booz Allen is paying $377,453,150 to settle allegations that it violated the False Claims Act with improper billing, the Justice Department announced Friday.
The McLean, Virginia, company provides consulting, managerial and engineering services to commercial and government clients. Under government contracting rules, costs charged to a contract by a firm such as Booz Allen must be related to the final aim of the contract. Conversely, firms are not allowed to charge unrelated costs to the government.
The U.S. government purported that from 2011 to 2021, Booz Allen allocated costs associated with its commercial and international work to its government contracts. Some of these allocations were entirely unrelated to the government work, while other allocations were for more money than was appropriate, according to the Justice Department.
Booz Allen was also accused of not disclosing its methodology for calculating the costs of its commercial and international work to the government.
“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,” U.S. Attorney for the District of Columbia Matthew Graves said in a statement.
The whistleblower and former Booz Allen employee that reported the alleged violations, Sarah Feinberg, will receive $69,828,832 of the settlement money under the provisions of the False Claims Act.
Ms. Feinberg said that “I hope this case will inspire more whistleblowers to hold corrupt individuals and corporations accountable,” in a statement released via the KaiserDillon law firm that represented her.
Booz Allen, meanwhile, contends it acted legally, but wanted to avoid a protracted legal fight.
“The company did not want to engage in what likely would have been a yearslong court fight with its largest client, the U.S. government, on an immensely complex matter,” a Booz Allen spokesperson explained.
Booz Allen has not been found legally liable, nor does the settlement constitute an admission of guilt. A parallel criminal investigation against the firm was dropped in 2021 with no charges, while a Securities and Exchange Commission investigation into the matter is ongoing, according to the New York Times.
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