Employee of Hanford contractor pays nearly $125,000 to settle False Claims Act allegations

by Ben Vernia | August 16th, 2018

On August 7, an employee of Lockeed Martin Corp. agreed to pay $124,400 to settle allegations that he submitted inflated prices in connection with a contract for environmental rehabilitation at the Hanford, Washington, nuclear reservation. According to DOJ’s press release:

The Justice Department announced today that Richard A. Olsen agreed to pay $124,440 to resolve claims that he violated the False Claims Act by submitting inflated prices in connection with a subcontract between Mission Support Alliance, LLC (MSA), a prime contractor at the Department of Energy (DOE) Hanford Nuclear Reservation, and Lockheed Martin Services, Inc. (LMSI), a subsidiary of Lockheed Martin Corporation (LMC).  LMSI provided services to MSA as well as other prime contractors assisting with environmental cleanup services at the Hanford site near Richland, Washington.  Mr. Olsen was an employee of LMC working for MSA.  LMC, through a subsidiary, was one of the owners of MSA.

   *   *   *

In August 2009, MSA began performance under a multi-billion dollar services contract with the DOE for the environmental cleanup of the Hanford Site.  The United States alleged that under the terms of MSA’s contract with DOE, LMSI, as an affiliate of MSA, was not entitled to receive profit on the work it performed for MSA.  The United States further alleged that Mr. Olsen, while he was an employee of LMC working for MSA, falsely represented to DOE that the LMSI subcontract did not include any profit.  Mr. Olsen allegedly received a payment of at least $41,480 from LMC for obtaining DOE’s consent to the inflated LMSI subcontract.

   *   *   *

Leave a Reply

Recent Posts

Recent Comments