The DOJ has announced that Booz Allen Hamilton Holding Corporation (“Booz Allen”) will pay $15.875 million to resolve allegations that it violated the False Claims Act (“FCA”).
According to the DOJ, between approximately 2013 and 2018, Booz Allen Hamilton Engineering Services LLC (“BES”), a subsidiary of Booz Allen, knowingly submitted fraudulent claims to the United States in connection with a General Services Administration (“GSA”) task order to supply computer military training simulators and systems to Department of Defense (“DoD”) agencies, including the Air Force. The allegations centered around BES’s former program managers, John G. Hancock and Karen K. Paulsen, who, along with a civilian Air Force employee and a subcontractor, engaged in a fraudulent scheme to influence the awarding of the GSA task order to BES. This conduct involved the improper use of confidential government information regarding competitor’s confidential bids and proposals to secure the contracts. In turn, BES knowingly submitted false claims to GSA in connection with 37 QuantaDyn modules.
Per the settlement, Booz Allen will pay $15,875,000.00 which includes $7,009,013.00 in restitution. QuantaDyn, a privately held software engineering firm that develops training simulation systems for the DoD, previously reached a settlement with the DOJ for more than $37 million. Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the commitment to protecting the integrity of the procurement process and holding accountable those who engage in fraudulent activities. This settlement serves as a cautionary tale and a reminder to contractors of how the Government will continue to employ one of its most powerful tools, the FCA, to ensure compliance.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today.