Booz Allen to pay $377 million to settle claims related to false claims

Defense contractor Booz Allen Hamilton has agreed to pay a $377 million settlement over allegations it improperly charged the U.S. government over a 10-year period, the Justice Department announced Friday.

The consulting firm allegedly billed the government for indirect services provided to its non-government clients in the United States and abroad, the Justice Department said. The DOJ also alleged that the company concealed its accounting practices.

“Government contractors must turn around when they bill the government for costs under government contracts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, who heads the DOJ̵[ads1]7;s Civil Division.

He added, “Today’s settlement demonstrates our commitment to holding accountable contractors who knowingly overburden the government and enrich themselves at the expense of the American taxpayer.”

When contacted for comment, Booz Allen said the company believed it acted “legally and responsibly.”

“Booz Allen has always believed that it acted lawfully and responsibly. It decided to settle this civil investigation for pragmatic business reasons to avoid the delay, uncertainty and expense of protracted litigation,” the government contractor said in a statement. “The company did not want to engage in what would likely have been a year-long legal battle with its largest client, the US government, in an immensely complex case.”

“The company cooperated fully with the authorities and is happy to move forward.”

The investigation was sparked by a whistleblower report from a former Booz Allen employee and covers alleged misconduct from 2011 to 2021. The whistleblower will receive nearly $70 million as a result of the settlement.

“This settlement, which is one of the largest procurement fraud settlements in history, shows that the United States will pursue even the largest companies and the most complex cases where taxpayer funds are alleged to have been stolen,” said U.S. Attorney for the District of Columbia, Matthew M. Graves.

“The Department of Justice is committed to rooting out all fraud, waste and abuse in government programs — small or large, simple or complex,” he added.

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