Booz Allen Hamilton Settles $15.9 Million False Claims Case
McLean, Saturday, 4 January 2025.
Booz Allen Hamilton has agreed to a $15.9 million settlement with the U.S. Justice Department over allegations of submitting fraudulent claims related to military contracts, impacting future dealings.
Settlement Details and Timeline
Booz Allen Hamilton Holding Corporation (NYSE: BAH) reached the settlement agreement with the Department of Justice on Friday, January 3, 2025 [1][3]. The settlement amount specifically totals $15.875 million and resolves allegations that the company’s subsidiary, Booz Allen Hamilton Engineering Services (BES), knowingly submitted fraudulent claims related to military training simulator contracts [5].
Nature of the Allegations
The Justice Department alleged that between 2013 and 2018, two former BES program managers, John G. Hancock and Karen K. Paulsen, collaborated with Air Force civilian employee Keith Seguin and QuantaDyn Corporation manager David Bolduc Jr. to secure 129 task orders for training simulators [1]. The scheme involved the improper disclosure of confidential information, including competitor bids and source-selection details, which was used to influence contract awards [5]. Of these orders, 37 were subsequently awarded to QuantaDyn as a subcontractor [1].
Company Response
A Booz Allen spokesperson has emphasized that the conduct described in the settlement largely occurred before the company’s acquisition of BES [1]. The company categorically denies violating the False Claims Act, stating that the individuals involved deliberately concealed their actions from the company, knowing they would face immediate termination if discovered [1].
Legal Implications and Aftermath
The settlement demonstrates the government’s commitment to maintaining procurement integrity [4]. Principal Deputy Assistant Attorney General Brian Boynton emphasized that government contractors receiving confidential information during procurement processes compromise the system’s integrity [1]. Notably, all four individuals involved - Hancock, Paulsen, Seguin, and Bolduc - have previously resolved criminal charges related to this conduct [5].