Title: Defense Contractor Booz Allen Hamilton to Pay $377 Million Settlement for Alleged Improper Charging of U.S. Government
Date: [Date]
Defense contractor Booz Allen Hamilton has agreed to pay a $377 million settlement over allegations that it improperly charged the U.S. government over a 10-year period, the Justice Department announced on Friday. The consulting firm is accused of charging the government for indirect services provided to its non-government customers in the U.S. and abroad, while also obscuring its accounting practices.
The settlement, one of the largest procurement fraud settlements in history, addresses misconduct from 2011 to 2021 and affirms the government’s commitment to hold contractors accountable for overcharging and unjust enrichment at the expense of American taxpayers. Principal Deputy Assistant Attorney General Brian M. Boynton, who heads the DOJ’s Civil Division, emphasized the importance of fair billing practices by government contractors.
“Government contractors must turn square corners when billing the government for costs under government contracts,” said Boynton. “Today’s settlement demonstrates our commitment to hold accountable contractors that knowingly overcharge the government and enrich themselves at the expense of the American taxpayers.”
Booz Allen was contacted for comment and responded by stating that the company believed it had acted lawfully and responsibly throughout the ordeal. The defense contractor has decided to settle the civil inquiry to avoid the potential delay, uncertainty, and expense of protracted litigation against its largest client, the U.S. government. The company expressed its satisfaction in being able to move forward, stating that it fully cooperated with the investigation.
The investigation began following a whistleblower report from a former Booz Allen employee and covers alleged misconduct spanning a decade. As part of the settlement, the whistleblower will receive nearly $70 million.
U.S. Attorney for the District of Columbia, Matthew M. Graves, described this settlement as a significant step towards combatting fraud and abuse in government programs, regardless of the size or complexity of the cases. He emphasized the Justice Department’s dedication to exposing any wrongdoing involving taxpayer funds.
“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 Graves. “The Justice Department is committed to ferreting out all fraud, waste, and abuse in government programs—small or large, simple or complex.”
The settlement serves as a reminder that accountability remains a top priority for the U.S. government and reinforces the need for all companies to act in accordance with proper billing procedures when dealing with government contracts.