The DOJ announced that Wise Services Inc. (Wise), an Ohio subcontractor serving the oil and gas industry, agreed to pay $302,500 to resolve allegations of causing fraudulent invoices to be submitted to the Department of Energy (DOE). It was alleged that Wise submitted fraudulent invoices to MOX Services LLC, the prime contractor to the DOE, for non-existent materials.

Wise operated as a subcontractor of MOX for the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE Savannah River Site in Aiken, South Carolina. According to the United States, Wise submitted hundreds of invoices charging for materials that did not exist. It was also alleged that Wise employees paid kickbacks to MOX employees for their involvement in this scheme that charged the Government millions of dollars. 

In March 2022, MOX agreed to pay $10,000,000 for violating the False Claims Act. The Government alleged that MOX knowingly submitted fraudulent invoices for non-existent materials and received improper kickbacks. As the DOE’s prime contractor, MOX violated its obligation to uncover Wise’s fraudulent invoices. MOX was specifically obligated to confirm receipt and acceptance of any materials before approving and submitting invoices to the Government. U.S. Attorney Adair F. Boroughs for the District of South Carolina commented that “[t]his settlement puts subcontractors on notice that they will be held accountable for submitting false invoices and paying kickbacks to contractors on federal contracts with the United States.”

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act litigation and health care fraud investigations. If you need assistance with such a matter, please contact us today.