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News | Aug. 2, 2023

Auditors Contribute to $377.45 Million Settlement

By DCAA Staff Writer

Supervisory Auditors Tim Chase, Myron Antoniw and Senior Auditors Nellymar Cartagena Leon, Karyn Yanochko, and Igor Yegoroff, supported a case that resulted in a settlement of $377.45 million.

The Booz Allen Hamilton Holding Corporation agreed to pay the United States to resolve allegations that it violated the False Claims Act by improperly billing commercial and international costs to its government contracts. The settlement resolves allegations that, from approximately 2011 to 2021, Booz Allen improperly charged costs to its government contracts and subcontracts that instead should have been billed to its commercial and international contracts. In particular, the government alleged that Booz Allen improperly allocated indirect costs associated with its commercial and international business to its government contracts and subcontracts that either had no relationship to those contracts and subcontracts or were allocated to those contracts and subcontracts in disproportionate amounts. As a result, Booz Allen obtained reimbursement from the government for the costs of commercial activities that provided no benefit to the United States. The settlement also resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery.

DCAA Operations Investigative Support Division auditors supported this case by reviewing accounting records, developing the damages model demonstrating the impact of the fraud, serving as subject matter experts in Cost Accounting Standards, and providing negotiation support during mediation.

Read the Department of Justice press release.