Booz Allen to Pay $15.875 Mil. to Settle False Claims Act Allegations

On January 3, 2025 Booz Allen Hamilton Holding Corporation (“Booz Allen”) agreed to pay the United States $15,875,000 to resolve allegations that a wholly owned subsidiary knowingly submitted fraudulent claims on a General Services Administration (“GSA”) task order to supply military simulators and systems to Department of Defense agencies. Booz Allen is a Fortune 500 Company with 31,900 employees, revenue of $9.3 Billion and a valuation of $19.3 billion.

The allegations are that two Booz Allen former program managers of the subsidiary knowingly engaged in a fraudulent course of conduct with Keith A. Seguin, then a civilian Air Force Employee and contracting official. and with a manager of a subcontractor, to have GSA award Booz Allen a task order. The government alleged that Seguin improperly and illegally divulged confidential government contracting and budget information, a competitor’s bid or proposal information and source selection information to the Booz Allen program managers, who used this information, despite knowing they were not authorized to possess it—and they then influenced GSA to award the task order. The information was allegedly used on subcontractor quotes as well.

Takeaway. This type of improper action of receiving government information during the procurement process is not new, and corrupts the integrity of that process, said the head of the Justice Department Civil Division. These types of settlements have occurred before, and demonstrate how one type of corruption can lead to civil false claims allegations.