Booz Allen to pay $377M to resolve allegations related to false claims

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

The consulting firm allegedly charged the government for indirect services provided to its non-government customers in the U.S. and abroad, the Justice Department said. The DOJ also alleged that the company obscured its accounting practices.

“Government contractors must turn square corners when billing the government for costs under government contracts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, who heads the DOJ’s Civil Division.

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

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

“Booz Allen has always believed it acted lawfully and responsibly. It decided to settle this civil inquiry 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 likely would have been a years-long court fight with its largest client, the U.S. government, on an immensely complex matter.”

“The company fully cooperated with the government and is pleased 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, demonstrates that the United States will pursue even the largest companies and the most complex matters where taxpayer funds are alleged to have been pilfered,” said U.S. Attorney for the District of Columbia Matthew M. Graves.  

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