The Justice Department announced on Friday that defense contractor Booz Allen Hamilton has agreed to pay $377 million in compensation over allegations that it unlawfully burdened the US government over a 10-year period.
The consulting firm allegedly billed the government for indirect services it provided to its non-government clients in the United States and abroad, the Justice Department said. The DOJ also alleged that the company had obfuscated its accounting practices.
“Government contractors must make compromises in accounting for government contract costs,” said Assistant Attorney General Brian M. Boynton, who heads the Justice Department’s civil division.
He added, “Today’s agreement demonstrates our commitment to holding accountable contractors who knowingly overtax the government and enrich themselves at the expense of American taxpayers.”
When asked to comment, Booz Allen said the company believes it is acting “lawfully and responsibly”.
“Booz Allen has always believed that he acted lawfully and responsibly. It was decided, for pragmatic business reasons, to settle this civil investigation to avoid delay, uncertainty and the expense of lengthy litigation,” the government contractor said in a statement. “The company did not want to engage in what would likely go on for years in court with its largest customer, the US government, over an extremely complex matter.”
“The company has fully cooperated with the government and is pleased to continue.”
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The investigation was sparked by a whistleblower report by a former Booz Allen employee and covers alleged wrongdoing from 2011 to 2021. The whistleblower will receive nearly $70 million from the settlement.
“This settlement, which is one of the largest procurement fraud settlements in history, demonstrates that the United States will prosecute even the largest corporations and most complex matters alleging the theft of taxpayer dollars,” said Matthew M. Graves, US Attorney for the District of Columbia.
“The Department of Justice seeks to track down every fraud, waste and abuse in government programs — small or large, simple or complex,” he added.
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