Booz Allen to pay $377 million to resolve misrepresentation allegations

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Defense contractor Booz Allen Hamilton has agreed to pay a $377 million settlement for allegations that he 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 nongovernment clients in the United States and abroad, the Justice Department said. The DOJ also alleged that the company obscured its accounting practices.

“Government contractors have to take sharp turns when charging the government for costs under government contracts,” said Senior Assistant Deputy Attorney General Brian M. Boynton, who heads the DOJ’s Civil Division.

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

When contacted for comment, Booz Allen said the company believed it was acting “lawfully and responsibly”.

“Booz Allen has always believed that he was acting lawfully and responsibly. He has 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 has fully cooperated with the government and is happy to move forward.”

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The investigation was prompted 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 in history for procurement fraud, demonstrates that the United States will prosecute even the largest corporations and the most complex cases where taxpayer funds were allegedly stolen,” said U.S. Attorney for the District of Columbia Matthew M. Graves.

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

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