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News | Dec. 21, 2022

Auditors' Support Contributes to Case

By DCAA Staff Writer

DCAA Auditor Glen Hughes and Supervisory Auditor Sandy Storzieri, members of DCAA’s Operations Investigative Support Division, provided support to a multi-agency team investigating allegation of fraud.  

On December 5, 2022, Obsidian Solutions Group agreed to pay over $500k to settle allegations that it violated the False Claims Act by billing the Defense Intelligence Agency (DIA) for labor performed by personnel that did not meet contractual requirements. Obsidian had a contract with DIA to provide strategic-level analytical support to advance national and Department of Defense (DOD) goals and objectives for protecting the DOD’s supply chain. The government alleged that Obsidian employed personnel who failed to meet the qualifications specified by the contract, either because the personnel lacked a required degree or the required years of relevant professional experience. As a result, according to the government’s allegations, DIA paid more for labor than could be justified by the personnel’s qualifications.

The DCAA auditors assisted on the case by reviewing contractual labor requirements, invoices, labor distribution report, employee qualifications support (such as resumes), and prepared the damage model. Their support was used by the U.S. Attorney's Office for the Eastern District of Virginia, the Defense Criminal Investigative Service, and DIA Office of Inspector General to achieve this settlement.

Read the Department of Justice press release.